Hub Group (HUBG) PT Lowered to $43 at Stifel

Stifel analyst J. Bruce Chan lowered the price target on Hub Group (NASDAQ: HUBG) to $43.00 (from $45.00) while maintaining a Buy rating.

The analyst commented: "Hub Group reported 2Q24 EPS of $0.47—in line with consensus, but shy of our $0.49 estimate. Intermodal volumes expanded more than expected, with 8% growth y/y, but yield was much softer, as the market has been more competitive for longer than management expected, and robust growth in local East Coast volumes was a drag on mix. As other companies have reported, we are starting to see more positive signs of market bottom and a return to normalcy, but nothing that rises to the level of sustainable positive rate inflection. For those reasons, management downgraded guidance to a more conservative range, putting pressure on near-term upside in the stock. That said, over the long run, our thesis remains that Hub Group is a better, more diversified, more resilient, and structurally higher-growth organization with better cash flow generation than the confines of its historical valuation range would imply."

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