Baird Upgrades Hub Group (HUBG) to Outperform

Baird analyst Dan Moore upgraded Hub Group (NASDAQ: HUBG) from Neutral to Outperform with a price target of $29.00.

The analyst comments: “We are upgrading the shares of Hub Group from Neutral to Outperform, reflecting what we believe is an increasingly attractive risk/reward profile. Our $29 price target is anchored to the company's book value, providing a conservative basis for valuation. However, we believe the underlying earnings power of the business could easily support a potential intrinsic value of $45 per share or more over time, especially in a takeout scenario.

Although we recognize that this recommendation is not for everyone, given the unresolved issues related to the company's previously disclosed accounting errors, we believe there is substantial underlying value in the business at the current share price. For investors willing to accept the associated risks and maintain a longer-term perspective, we recommend a disciplined dollar cost averaging strategy to take advantage of what we believe is an increasingly attractive risk/reward profile and valuation.”

For an analyst ratings summary and ratings history on Hub Group click here. For more ratings news on Hub Group click here.

Shares of Hub Group closed at $25.76 yesterday.

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