Dahlman Rose Sees Near 30% Upside In CAI International (CAI)

Dahlman Rose & Co. has a Buy rating and a $34 price target on shares of CAI International (NYSE: CAI) after it reported better than expected earnings.

In a note to clients, Dahlman Rose writes, "We are estimating 2Q11 EPS of $0.52 vs $0.31 last year. Our 2Q11 estimate includes a smaller investment in new containers than 1Q11 as well as the continued depreciation benefit. We are estimating 2011 EPS of $2.30 up from our prior estimate of $1.90 to account for the better than expected 1Q. For 2012, our preliminary estimate is $2.80/share. We are therefore raising our price target to $34/share (from our prior price target of $30/share) using 12x estimated 2012 EPS."

Shares of CAI closed at $26.82 yesterday.