UBS Maintain a 'Neutral' on Hub Group (HUBG); Cutting Estimates and Price Target

UBS maintain a 'Neutral' on Hub Group (NASDAQ: HUBG) price target lowered from $41.00 to $32.50.

UBS analyst says, "In light of our more cautious macro outlook—albeit with no recession in our forecast at this time—we reduce our earnings estimates for Hub. Our 2011 and 2012 EPS estimates drop from $1.60 and $2.00, respectively, to $1.59 and $1.88. Despite its asset-light business model, Hub underperformed the broader universe of mid- and large-cap transport companies in terms of EPS in the past recession so we view material EPS outperformance in a decelerating economy unlikely. We also expect valuation multiple compression to persist given heightened macro fears."

For more ratings news on Hub Group click here and for the rating history of Hub Group click here.

Shares of Hub Group closed at $29.38 yesterday.

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