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J.P. Morgan Reiterates Overweight Rating, $88 PT on Genesee & Wyoming

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In a report published Wednesday, J.P. Morgan & Co. reiterated its Overweight rating and $88.00 price target on Genesee & Wyoming (NYSE: GWR).

J.P. Morgan noted, “GWR has strong support for growth in 2013 and into 2014 from multiple iron ore projects and accretion from the RA acquisition. While GWR management has been very active with deals and new projects we still would not be surprised to see additional modest sized North American acquisitions or new mine projects in Australia in the medium term. GWR does have exposure to what appears to be a slower pace of economic growth in the US, but its project driven growth is likely to overwhelm the impact of a modest downshifting in the pace of US growth. GWR's valuation at about 17.0x on our 2013 earnings forecast is strong but we believe that the multiple drivers of EPS growth provide solid support for this valuation. In addition we note that GWR's acquisition and project driven growth story is inherently less sensitive to the pace of US economic growth. We believe that reward to risk remains attractive for GWR and we continue to rate this name Overweight.”

Genesee & Wyoming closed on Monday at $76.08.

Posted-In: J.P. Morgan & Co.Analyst Color Reiteration Analyst Ratings

 

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