Skip to main content

Market Overview

Seaport Global Securities Upgrades Kirby On Solid Barge Industry Fundamentals

Share:
Seaport Global Securities Upgrades Kirby On Solid Barge Industry Fundamentals

Kirby Corporation (NYSE: KEX) is facing strong industry fundamentals and is well positioned to leverage them, according to Seaport Global Securities.

The Analyst

Seaport Global’s Kevin Sterling upgraded Kirby from Neutral to Buy, while establishing a price target of $100.

The Thesis

The inland and coastal barge markets are poised for a strong recovery due to favorable supply and demand dynamics, Sterling said in the note.

While the inland markets had improved slightly in 2019 in terms of utilization and pricing, the coastal market had delivered solid growth, the analyst mentioned. He added that channel checks indicated 15%-20% year-on-year growth in coastal contract renewal rates.

Demand fundamentals in Kirby's core markets for petrochemical and refined products were solid, Sterling said. He added that all these factors taken together positions Kirby for a pricing recovery in 2020 and beyond, especially in view of the Gulf Coast petrochemical build-out being well underway.

The inland barge markets were in recession over the past two years and the company acquired competitors at distressed prices. “Now Kirby is locked and loaded at just the right time as the cycle turns with scale like we have never seen before for either KEX or the barge industry for that matter,” Sterling wrote.

Price Action

Shares of Kirby were trading up by 5.24% at $86.80 on Thursday.

Latest Ratings for KEX

DateFirmActionFromTo
Nov 2020B of A SecuritiesUpgradesNeutralBuy
Aug 2020B of A SecuritiesMaintainsNeutral
Jul 2020StifelMaintainsHold

View More Analyst Ratings for KEX
View the Latest Analyst Ratings

 

Related Articles (KEX)

View Comments and Join the Discussion!

Posted-In: Kevin Sterling Seaport Global SecuritiesAnalyst Color Upgrades Price Target Analyst Ratings

Latest Ratings

StockFirmActionPT
NIUDaiwa CapitalInitiates Coverage On41.5
QMCONorthland Capital MarketsInitiates Coverage On12.0
IBKRJefferiesInitiates Coverage On89.0
MRETFTD SecuritiesDowngrades18.5
SWKSGoldman SachsDowngrades135.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com