Analysts Upbeat After ARII Investor Meeting

Key Banc recently hosted investor meetings with American Railcar Industries Inc.

as analysts left with "renewed enthusiasm". Key Banc continues to believe ARII (and the industry) has likely passed the trough in terms of orders and backlog. Key Banc believes ARII is well positioned for an industry upturn. Following several years of expansion and upgrades, ARII has the newest manufacturing facilities of the public OEMs. It's also expected that the industry is troughing as it typically does. Despite positive trends, ARII's EPS are unlikely to see dramatic improvement in the near term. It is believed that the main reason ARII is losing money on the EPS line is its' interest payments of ~$18 million per year. Key Banc believes consolidation would be positive for the industry. Key Banc rates ARII a Buy and has a target price of $24 ARII is trading higher at $14.23