UPDATE: Bank of America Initiated Textainer Group at Neutral on Balanced Outlook

Bank of America initiated its coverage on Textainer Group

with a Neutral rating and a $33 price objective. Bank of America said, "We are initiating coverage on Textainer Group Holdings with a Neutral rating (B-2- 7) and $33 price objective. Our price objective is based on an 8.4x EV/EBITDA target multiple on our 2013 EBITDA estimate of $406 million, toward the upper end of the company's 7x-9x historical range. We believe this top of range level is warranted given its moves to grow capex, yet is tempered by a soft outlook for global economic growth. TGH shares currently trade at a 120 bp premium on EV/EBITDA on 2013 estimates relative to peers, reflecting the company's more conservative leverage and higher return on assets." Textainer Group closed at $31.15 on Friday.