Jefferies Reiterates a 'Buy' on J.B. Hunt Transport Services (JBHT); How Does 32% EPS Growth Sound Despite a Weakened Economy?

Jefferies reiterates a 'Buy' on J.B. Hunt Transport Services (NASDAQ: JBHT), raises price target by $1 to $49.

Jefferies analyst says, "Last night, JBHT reported 3Q EPS that upsided consensus by 5.4%. Despite a weakened economy and other external factors, JBHT posted 32% YoY earnings growth. This is not bad for a stock trading at 16.2x next 12 months EPS."

"Looking ahead to 2012, we expect 8.9% revenue growth (vs. 19.4% YoY in 2011e) and 60bps of margins expansion (vs. 60bps in 2011e), driving 17.2% of EPS growth (vs. 31.9% YoY in 2011e) — even into a 1.5% to 2.0% GDP scenario. Many of the asset-based names would undoubtedly offer more operating leverage into an unexpected strengthening of the U.S. economy, although JBHT's improvements strike us as more sustainable over the full course of a cycle."

For more ratings news on J.B. Hunt Transport Services click here and for the rating history of J.B. Hunt Transport Services click here.

Shares of J.B. Hunt Transport Services closed at $38.89 yesterday.

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