Deutsche Bank double downgrades J.B. Hunt to Sell from Buy with $83 target
Deutsche Bank analyst Amit Mehrotra last night double downgraded J.B. Hunt to Sell from Buy and cut his price target for the shares to $83 from $125. The analyst says his work makes it clear that the trajectory of J.B. Hunt's returns is negative. This will continue, increasingly, as U.S. import volumes shift east, Intermodal length of haul shrinks and the company's highest return business increasingly competes with trucking, Mehrotra tells investors in a research note. The analyst sees a "significant shift" in U.S. imports eastward and away from West Coast ports. He downgraded J.B. Hunt after researching the implications for intermodal and trucking as length of haul moves lower.