Rail Service Revival Boosts J.B. Hunt's Growth Prospects: Analyst Sees Significant Volume Expansion
Portfolio Pulse from Shivani Kumaresan
BMO Capital Markets analyst Fadi Chamoun upgraded J.B. Hunt Transport Services Inc (NASDAQ:JBHT) from Market Perform to Outperform and increased the price target from $200 to $220. The upgrade is based on the revival of rail service, which is expected to support volume growth in 2024. The analyst notes that rail industry volumes have lagged behind industrial production, and with improvements in rail service, JBHT is well-positioned to capture growth, especially in intermodal volumes. JBHT's partnership with BNSF is highlighted as a key factor for potential growth. JBHT's stock rose 2.24% to $190.79 following the upgrade.
December 11, 2023 | 6:07 pm
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POSITIVE IMPACT
J.B. Hunt Transport Services Inc's stock received an upgrade from BMO Capital Markets with a price target increase from $200 to $220, based on the anticipated rail service revival and expected volume growth.
The analyst upgrade and raised price target are strong positive signals for investors, suggesting confidence in JBHT's growth prospects. The stock's rise following the announcement indicates immediate market reaction. The partnership with BNSF and the focus on intermodal volumes are key drivers for the positive outlook. The analyst's projection of a 6.6% CAGR in intermodal volume growth over the next five years further supports the potential for stock appreciation.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100