Sterne Agee Reiterates Buy Rating, $42 PT on Textainer Group Holdings Limited
In a report published Monday, Sterne Agee Group reiterated its Buy rating and $42.00 price target on Textainer Group Holdings Limited (NYSE: TGH).
Sterne Agee noted, “We believe TGH's $78M acquisition of a managed portfolio of containers reflects TGH's--and the broader container leasing group's--strong asset growth opportunities despite slower global economic growth. TGH recently announced that it has acquired a 50.1% interest in TAP Funding Ltd., a company that owns roughly a 99,000 TEU fleet of containers currently managed by TGH, for $78M. The $78M purchase price includes the undisclosed value of TAP Funding's existing outstanding debt. This transaction increases the owned portion of TGH's fleet from 69% at the end of 3Q to 71%, furthering TGH's stated goal of increasing the owned portion of its fleet. TGH indicated that the fleet has high utilization and is leased out to a diversified mix of lessees.”
Textainer Group Holdings Limited closed on Friday at $30.95.
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