Wells Fargo Downgrades RailAmerica Inc. (RA) to Market Perform; Acquired by GWR for $27.50/Share
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Price: $27.50 --0%
Rating Summary:
0 Buy, 8 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 6
Rating Summary:
0 Buy, 8 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 6
Trade RA Now!
Wells Fargo downgraded RailAmerica Inc. (NYSE: RA) from Outperform to Market Perform with a price target range of $27-$27.50 (from $26-$27.00).
Analyst, Anthony P. Gallo, said, "We believe that the strategic and operational improvements that the post buy-out management team brings to RA can improve upon the inherent attractiveness of regional railroading. We believe this has been evident in recent margin and revenue performance. RA has agreed to be acquired by Genesee & Wyoming (NYSE: GWR) for $27.50 per share."
"If the transaction were to collapse (we do not believe it will) and RA shares were to revert to the 5.6% average peer group increase, the implied price would be $22.75, all else being equal."
For an analyst ratings summary and ratings history on RailAmerica Inc. click here. For more ratings news on RailAmerica Inc. click here.
Shares of RailAmerica Inc. closed at $27.25 yesterday, with a 52 week range of $11.05-$41.74.
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Analyst, Anthony P. Gallo, said, "We believe that the strategic and operational improvements that the post buy-out management team brings to RA can improve upon the inherent attractiveness of regional railroading. We believe this has been evident in recent margin and revenue performance. RA has agreed to be acquired by Genesee & Wyoming (NYSE: GWR) for $27.50 per share."
"If the transaction were to collapse (we do not believe it will) and RA shares were to revert to the 5.6% average peer group increase, the implied price would be $22.75, all else being equal."
For an analyst ratings summary and ratings history on RailAmerica Inc. click here. For more ratings news on RailAmerica Inc. click here.
Shares of RailAmerica Inc. closed at $27.25 yesterday, with a 52 week range of $11.05-$41.74.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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