KeyBanc Raises Price Target on Hub Group (HUBG), Sees Exel Trans. Acquisition as Positive

KeyBanc is reiterating its Buy rating and is raising its price target on shares of Hub Group (NASDAQ: HUBG) due to the Exel Transportation acquisition.

The firm is raising its 2011 and 2012 EPS estimates from $1.60 and $1.90 to $1.64 and $2.00. To go inline with its new estimates, KeyBanc is raising its price target by $2 to $44.

HUBG only paid $83 million for the company when its 2010 gross revenue was $717 million. The firm believes that the deal was fair, but notes that it is a huge positive for the HUBG.

KeyBanc Comments that excluding acquisition related costs, "Mode is expected to contribute $0.03-$0.06/share on $550 million-$600 million of gross revenue for nine months in 2011, and high single to low double digits cents per share in 2012."

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 $38.25 yesterday.

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