Hub Group's Acquisition Of Forward Air Final Mile Can Be Accretive By 20 Cents In FY24 Earnings: Analyst
Portfolio Pulse from Nabaparna Bhattacharya
Hub Group, Inc. (HUBG) has acquired Forward Air Final Mile, which is expected to be accretive to HUBG's FY24 earnings by $0.20. Benchmark analyst Christopher Kuhn maintains a Buy rating on HUBG and raises the price target from $85 to $98. The acquisition aligns with HUBG's strategy to increase non-asset business and expedite integrations. It also allows Forward Air Corporation (FWRD) to focus on expedited LTL. The deal provides HUBG with new cross-selling opportunities in the appliance and installation sector.
December 22, 2023 | 7:36 pm
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NEUTRAL IMPACT
Forward Air Corporation's divestiture of its Final Mile segment to HUBG allows it to concentrate on its core expedited LTL business.
While the sale allows FWRD to focus on its core business, the impact on the stock is less clear without specific financial details on how the divestiture affects its earnings or operations.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Hub Group's acquisition of Forward Air Final Mile is expected to be accretive to its FY24 earnings by $0.20 per share, with an analyst raising the price target to $98.
The acquisition is directly related to HUBG's growth strategy and is expected to be accretive to earnings, which is typically viewed positively by investors. The raised price target by an analyst further supports the potential for stock appreciation.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90