Wells Fargo Adjusts JBHT 2011/2012 EPS Estimate

Wells Fargo is increasing its 2011 EPS estimate on shares of J.B. Hunt Transport Services (NASDAQ: JBHT) to $2.07 from $2.05 “on higher revenue expectations partially offset by higher interest expense (near term), wage inflation and depreciation.”

“Our 2012 forecast moves to $2.51 from $2.48 on diminishing interest expense and a slightly higher revenue target,” Wells Fargo writes. “We believe our margin forecast may prove to be quite conservative over the intermediate term as lane balance improves within Intermodal, and Dedicated and Truckload reap the benefits of market conditions and improved positioning.

“We reiterate our Outperform rating with an unchanged 6-12 month Valuation Range of $46-50 (9.25x EV/EBITDA on 2011 or 20.0x P/E on 2012 EPS).”

J.B. Hunt Transport Services currently trades at $41.07.