CS First Boston upgrades JB Hunt Transport (JBHT) to buy from sell.
Analyst Gary Yablon says he lowered JB Hunt several months ago from hold to sell based on relative valuation within the truckload segment and lack of conviction that management would be able to improve profitability at its core truck operations. Yablon says that he is becoming more convinced JB Hunt is finally moving down the path towards consistent improvements in its truck and dedicated contract services operations.
He thinks this will be evident in the fourth quarter, so he raises $0.09 fourth quarter EPS estimate to $0.15, $0.90 2002 EPS estimate to $1.10. He has a mid- to upper-$20 price target.