Hub Group upgraded to Outperform at Wolfe Research with earnings at trough

As previously reported, Wolfe Research upgraded Hub Group to Outperform from Peer Perform with a $98 price target as part of the firm’s Transport Q3 preview report. While the firm continue to see significant EPS risk versus consensus into next year, even its “well below” consensus estimates, which incorporate a second consecutive year of down earnings, leave the stock trading at a P/E multiple below its historical averages. The firm sees “a below average multiple on what we think is trough earnings,” prompting its upgrade.