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J.B. Hunt Hits a Downgrade Speed Bump From Bank of America

M. Corey Goldman

fell more than 2.7% on Tuesday after receiving a downgrade from analysts at Bank of America, who lowered their price target to neutral from buy and cut their one-year price target on the stock to $95. J.B. Hunt stock was down 2.7%, or $2.42, at $86.84 in mid-afternoon trading on the Nasdaq Stock Market after Bank of America warned of a tougher road ahead for the trucking and transportation company amid higher general rail costs as well as shifting traffic patterns. "Given secular headwinds of higher rail costs, shifting traffic patterns and refined rail lanes from Precision Scheduled Rail models, we believe volumes and JBHT's multiple may face sustained pressure versus historical levels, particularly as truckload stocks have retreated to an 11 times average on 2019, from upper-teens over the past year," Bank of America said in a note to clients.