UPDATE: Stifel Upgrades Trinity Industries

In a report published Thursday, Stifel analyst John Larkin upgraded

to Buy from Hold, changing its price target to $67.00 from NA. According to the report, the analysts believe the company's guidance for 2014 will remain the data point that investors focus on within Trinity's upcoming earnings presentation. “Railcar unit production should be significantly higher in 2014 relative to 2013 following increases in production rates in mid-to-late 2013 that should continue into 2014,” the report noted. “In light of the capacity demonstrated by the company's implied 4Q13 delivery guidance (7,000-7,500) and the company's robust backlog, we believe it is reasonable to assume that 2014 deliveries should ramp from the 6,200 +/- 1Q14 deliveries to a delivery number that is closer to 7,000 in 2Q14-4Q14. That order pattern would lead to a full-year delivery number of 27,200 or y/y growth in deliveries of about 12%.” Some highlights from the report included: -”We believe the company's fundamentals remain strong in the areas of tank barge construction and tank container construction.” -”The company is well capitalized in our view with liquidity of $1.2 billion at the end of 3Q13.” TRN closed Wednesday at $56.67.