Stifel raises Hub Group to 'hold' on improved risk-reward profile
HUBG•Stifel raised Hub Group's rating to “hold” from “sell,” saying the stock's recent decline improved its risk-reward profile. It cited a stronger-than-normal fourth quarter and broader freight-cycle recovery as potential support for resolving reporting issues and returning to normal operations.
1. Rating change
Stifel raised logistics provider Hub Group's rating to “hold” from “sell,” saying the stock's recent share-price decline reduced downside risk while preserving recovery potential. The brokerage also pointed to an improving freight-industry backdrop.
2. Freight outlook
Stifel said a stronger-than-normal fourth quarter and a broader freight-cycle recovery could help Hub Group resolve its reporting issues and return to normal operations. Four of 11 brokerages rate the stock “buy” or higher, while seven rate it “hold”; the median price target is $39.
