Hub Group downgraded to Neutral from Overweight at JPMorgan

JPMorgan downgraded Hub Group to Neutral from Overweight with a price target of $84, down from $100. The firm’s updated estimates put the company in a small group with forecasted year-over-year earnings declines, the analyst tells investors in a research note. The firm says the Hub model historically works better in a rising truckload rate environment. It is difficult to see Hub outperforming in 2024 in a lower for longer market, especially if rates have to go down in the first half of 2024 tto clear out the overcapacity in the market plays out. JPMorgan expects the increased focus on volume growth will be viewed negatively by investors as it adds some more capacity to the market.