UPDATE: Sterne Agee Raises PT ton CAI International on Improving Fundamentals

In a report published Monday, Sterne Agee reiterated its Buy rating on CAI International

and raised its price target from $30 to $33. Sterne Agee reported that, “Given the attractive fundamentals the container leasing sector currently enjoys, we believe CAP could potentially exceed the $525M it invested in 2012. After a growth hiccup in 2012 (still a respectable 4%, but down from 7% in 2011), we believe global container trade growth will likely return to mid single-digit growth in 2013, driving demand for new containers. At the same time, while the health of the container shipping lines has improved relative to 2011 (many of the large lines posted a small profit in 2012 vs. losses in 2011), the lines remain capital constrained, which means continued reliance on leasing to meet container needs. The net result is that industry container capex will likely exceed 2012 levels, and that CAP is in an attractive position to profitably grow its fleet.” Shares of CAI International closed at $28.69 on Friday.