Hub Group resumed with an Equal Weight at Stephens

Stephens analyst Daniel Imbro resumed coverage of Hub Group (HUBG) with an Equal Weight rating and $46 price target. The firm expects Intermodal industry fundamentals to remain challenged in the near term, but sees a number of potential catalysts on the horizon, including a potential tightening in the truck market in the the second half of 2024, as well as the potential tailwind from increased transloading following the recent sharp rise in ocean rates. In the near term, the firm expects Hub Group volumes to outperform on a year-over-year basis, while at J.B. Hunt (JBHT) the firm expect volumes to improve moderately sequentially and move positive on a year-over-year basis after declining slightly in Q1.