Benchmark Reiterates Buy Rating on Hub Group (HUBG)

Benchmark analyst Christopher Kuhn reiterated a Buy rating and $40.00 price target on Hub Group (NASDAQ: HUBG).

The analyst commented, "On the second quarter conference Hub Group sounded unsurprisingly bullish on the Union Pacific and Norfolk Southern merger since they are the exclusive rail partners of Hub Group in the United States. For Hub the proposed merger presents several catalysts that should create significant incremental intermodal conversion from over-the-road. As such we think Hub is the best positioned IMC to capitalize on the proposed merger if it passes. As for the second quarter, revenue slightly missed our estimates but adjusted EPS of $.45 was $.02 better...The midpoint of FY 2025 EPS guidance was lowered but near our estimates. So, like our other transport names that have reported we are only making minor adjustments to our estimates. We maintain our Buy rating and $40 price target as we still think HUBG is well positioned for a recovery in over the road conversions to intermodal which could accelerate with the UP-NS merger."

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 $33.60 yesterday.

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