UPDATE: Deutsche Bank Raises PT on Genesee & Wyoming on Expected Growth Recovery
In a report published Monday, Deutsche Bank analyst Justin Yagerman reiterated a Buy rating on Genesee & Wyoming (NYSE: GWR), and raised the price target from $104.00 to $116.00.
In the report, Deutsche Bank noted, “We have introduced our 2015 EPS estimates and adjusted our 2013-14E earnings estimates to incorporate DB's House view as we expect slow growth to continue well into 2014. However, this is not a bad environment for earnings growth as cost inflation is generally modest (excluding TL where new government regulations, a tight market for qualified drivers, and more expensive equipment are driving above-average cost increases) and volumes are expanding, albeit at a slower-than-desired pace. DB expects economic growth to accelerate in H2 2014 on the strength of housing, which should help drive freight demand. Our new price targets are derived using a forward P/E multiple on our CY2015E EPS estimates.”
Genesee & Wyoming closed on Friday at $92.58.
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