UPDATE: Deutsche Bank Raises PT to $19 on RailAmerica

Deutsche Bank reiterates its Hold rating on RailAmerica (NYSE: RA) and increases its price target to $19 from $17 on upside to Q4 from solid non-freight growth and pricing.

Deutsche Bank says, "Last week, RA reported Q4 adjusted EPS of $0.33, above both our estimate of $0.22 and Consensus of $0.21. Adjusted EPS excludes $2.3 million ($0.03) of swap termination costs and a $1.6 million ($0.02) severance charge. Upside was driven by higher non-freight revenue (up 48.5% y/y), and pricing improvement with revenue/unit up 7.2% y/y. However, part of the beat was driven by a lower-than-expected tax rate ($0.02) and better-than-expected insurance and claims performance ($0.03)."

RA closed at $18.73 a share on Friday.