Hub Group (HUBG) PT Lowered to $42 at Benchmark to Reflect Accounting Errors
Benchmark analyst Christopher Kuhn lowered the price target on Hub Group (NASDAQ: HUBG) to $42.00 (from $50.00) while maintaining a Buy rating.
The analyst commented, "Following continued filing delays, we are lowering our estimates and reducing our price target to $42 (from $50) to reflect the accounting errors first disclosed in early February. While visibility remains limited, we maintain our Buy rating, as we view the issue as primarily related to financial reporting rather than underlying business fundamentals. The previously disclosed error relates to an understatement of accounts payable and purchased transportation (PT) costs of ~$77M. The company has not yet fully quantified the corresponding impact across purchased transportation, warehousing costs, and accounts payable, which continues to limit visibility into normalized earnings. On May 12, Hub Group disclosed a delay in filing its 1Q26 Form 10-Q (via Form 12b-25), citing the need to first complete its previously delayed FY25 Form 10-K. The delays stem from an ongoing Audit Committee review, which has identified accounting errors requiring restatement of FY23–FY24 financials, in addition to previously disclosed 2025 interim periods. As a result, prior financial statements for these periods should no longer be relied upon."