Deutsche Bank Downgrades RailAmerica Inc. (RA) to Hold; Valuation Call
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Price: $27.50 --0%
Rating Summary:
0 Buy, 8 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Rating Summary:
0 Buy, 8 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Trade RA Now!
Deutsche Bank downgraded RailAmerica Inc. (NYSE: RA) from Buy to Hold. PT $15.
Deutsche analyst says, "We downgraded RA on valuation as we no longer see sufficient upside potential to merit a Buy-rating after yesterday’s 8.5% move (vs. a 0.1% decline in the S&P 500). While pleased with RA’s Q4 results, we reduced our 2011 EPS estimate due to lower-than-expected non-freight revenue guidance. Although we see potential positive catalysts (a recent contract renegotiation [which will aid both pricing and improve fuel cost recovery] and a $50 million buyback authorization), we believe shares are trading closer to fair value. (FY11 EPS lowered from $0.85 to $0.75)"
For more ratings news on RailAmerica Inc. click here and for the rating history of RailAmerica Inc. click here.
Shares of RailAmerica Inc. closed at $14.48 yesterday, with a 52 week range of $9.16-$14.75.
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Deutsche analyst says, "We downgraded RA on valuation as we no longer see sufficient upside potential to merit a Buy-rating after yesterday’s 8.5% move (vs. a 0.1% decline in the S&P 500). While pleased with RA’s Q4 results, we reduced our 2011 EPS estimate due to lower-than-expected non-freight revenue guidance. Although we see potential positive catalysts (a recent contract renegotiation [which will aid both pricing and improve fuel cost recovery] and a $50 million buyback authorization), we believe shares are trading closer to fair value. (FY11 EPS lowered from $0.85 to $0.75)"
For more ratings news on RailAmerica Inc. click here and for the rating history of RailAmerica Inc. click here.
Shares of RailAmerica Inc. closed at $14.48 yesterday, with a 52 week range of $9.16-$14.75.
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