-- J.B. Hunt Transport Services (JBHT) is seeing better-than-expected domestic intermodal volume trends in Q1 despite weather-related disruption in January, UBS Securities said in a Monday note.
The brokerage said industry intermodal volumes are tracking ahead of prior expectations based on container import and rail volume data. The firm expects this to result in an improvement in J.B. Hunt's operating ratio to 91.8% in the quarter, versus a previous estimate of 92.1%. It raised its Q1 earnings per share estimate to $1.45 from $1.43.
UBS said 2026 intermodal volume is now expected to grow 1%, compared with a prior estimate of a 0.7% decline. Q2 intermodal volume is also now projected to rise 2.4% versus 0.1% previously.
Stronger truckload spot rates are expected to support intermodal pricing with a lag of about three quarters which can lead to improved realized pricing starting in Q3. UBS raised its 2026 EPS estimate to $7.35 from $7.15 and its 2027 estimate to $9.40 from $8.90.
UBS adjusted its price target on J.B. Hunt to $216 from $196 and maintained its neutral rating.
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