JBHT - JB Hunt Hub Group downgraded as UBS assesses intermodal

JB Hunt Transport Services ( NASDAQ: JBHT ) and Hub Group ( NASDAQ: HUBG ) both received bearish appraisals from UBS on Wednesday.

The former was cut from Neutral to Sell while Hub Group was downgraded to Neutral from a prior Buy. The analysis explained that expected revenue deceleration in line with a deteriorating macro environment is anticipated to hit both intermodal names, especially as import volume slows.

“There is downside risk to 2023 earnings for JBHT and HUBG as it will be difficult for both companies to grow intermodal volume in 2023,” the bank’s analysts explained. “We believe excess container capacity, falling TL contract rates, and declining accessorial/storage revenue also will put greater pressure on intermodal pricing and revenue per load in 2023 than investors are expecting.”

JB Hunt ( JBHT ) was assigned a $155 price target, down from a prior $175, alongside the move to Sell. Hub Group’s ( HUBG ) price target, meanwhile, was cut to $89 from $101.

Read more on leadership changes made at Hub Group late in 2022 .

For further details see: