J.B. Hunt guidance goes from 'conservative' to 'unrealistic,' analyst says

|By:, SA News Editor

JB Hunt Transport (JBHT -0.5%) drops as much as 4.7% despite strong Q2 results before rebounding, as analysts including Loop Capital's Rick Paterson blame an unchanged guidance and the market’s perception that the trucking cycle has peaked.

The unchanged guidance "has now gone from conservative to, arguably, unrealistic," says Paterson, who thinks it will take time for "why didn't they raise guidance" concerns to fade.

Paterson maintains his Buy rating on JBHT and even raises his stock price target to $151 from $145.

But trucking peers are broadly lower, despite JBHT's results, amid concerns that the gains may not be sustainable; USAK, KNX, SNDR, PTSI, CVTI, HTLD, ODFL, WERN, SAIA and YRCW are all down sharpy.

Separately, Bloomberg analyst Lee Klaskow says truckload carriers should benefit from a prolonged trucking cycle, despite the market’s perception that it peaked.

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