J.B. Hunt upgraded to Buy at UBS on Q4 report, higher 2025 EPS estimate

As previously reported, UBS analyst Thomas Wadewitz upgraded J.B. Hunt to Buy from Neutral with a price target of $234, up from $205. The company’s Q4 earnings report provided evidence their intermodal margin has likely reached bottom and shows potential for gradual improvement in 2024, as well as pointing to a stronger cyclical upturn in 2025, the analyst tells investors. Given that the firm expects a stronger cyclical upturn in 2025, where 5% growth in intermodal pricing translates to a more powerful cyclical rise and 25% EPS growth, the firm is raising its 2025 EPS estimate to $10.16 from $9.30, the analyst noted.