Morgan Stanley Downgrades J.B. Hunt

J.B. Hunt Transport Services Inc. is expected to underperform in its peer group, according to the recent rating change that Morgan Stanley Investment issued on June 23. Morgan Stanley recently downgraded the Lowell truckload carrier from an “equal weight” performer to an “under weight” performer. Typically when a stock recieves that rating it is expected to underperform the market as a whole over the next 12 months, it is expected to underperform its peer group in the next 12 months. Analysts at Morgan Stanley could not be reached for comment.

“Our rating for the stock continues to be overweight,” said Chaz Jones, an analyst at Stephens Inc. “With that rating, obviously we think that the stock is going to continue to appreciate from where it is now.”

Jones did not want to speculate on Morgan Stanley’s rating.

Stephens Inc. is not the only firm to disagree with Morgan Stanley’s recent downgrade. Stifel Financial Corp., a full-service regional brokerage and investment banking firm headquartered in St. Louis, began coverage of J.B. Hunt stock at a “buy” rating. Their “buy” rating endorses an expected market return of 15 percent over the next 12 to 18 months.