UPDATE: Stifel Nicolaus Raises PT to $38 on Trinity Industries Following Meeting with Management
Stifel Nicolaus reiterated its Buy rating on Trinity Industries (NYSE: TRN) and raised its price target from $36 to $38.
Stifel Nicolaus commented, "The following points represent our thoughts following the meetings. The current lead time for new tank cars is 15-18 months. For grain cars, in contrast, the wait time is only a couple of quarters. Lease rates rising; We believe the company's lease rates are rising with a similar trajectory to railcar lessor GATX, which publishes its internally-generated Lease Price Index. Long leases for crude equipment; Durations on new leases for tank cars used for the transportation of crude oil are currently for 10-years. Additional pipeline capacity is not expected to kill the crude-on-rail story."
Trinity Industries closed at $34.17 on Thursday.
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