J.B. Hunt Transport Services announced on Monday that its wholly-owned subsidiary, J.B. Hunt Transport, has acquired the assets of Mass Movement in an effort to further expand its final mile delivery services. The supply chain solutions provider didn’t disclose the financial terms of the deal but said that the transaction was funded through cash on hand.
The deal marked J.B. Hunt’s (JBHT) fourth acquisition in the final mile services space since 2017. Founded in 1996, Mass Movement provides delivery services for the commercial fitness industry and has generated $29 million in revenues in 2019. Since its inception, “the company has delivered two million-plus pieces of equipment to more than 3,500 fitness centers throughout North America.”
“Mass Movement presents an opportunity to expand our expertise in the final mile delivery of big and bulky products,” J.B. Hunt CEO John Roberts said. “The acquisition complements our current service and will enhance our ability to meet the growing demand of customers in the commercial health and fitness industry.” (See JBHT stock analysis on TipRanks)
Ahead of this announcement, Deutsche Bank analyst Amit Mehrotra raised the stock’s price target to $139 (2.8% upside potential) from $132 and reiterated a Hold rating. Mehrotra believes that J.B. Hunt’s earnings could surpass estimates given “positive inflection” in the US housing demand, industrial economy, inventory restocking, and release of pent-up consumer demand.
Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 4 Buys and 6 Holds. The average price target stands at $136.56 and implies upside potential of about 1% to current levels. Shares have advanced by about 15.8% year-to-date.
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