UPDATE: Stifel Downgrades Trinity Industries (TRN) to Hold

(Updated - April 19, 2016 11:15 AM EDT)

Stifel downgraded Trinity Industries (NYSE: TRN) from Buy to Hold and removed its price target (prior $20.00). Analyst Michael J. Baudendistelis is less optimistic that demand will improve in the railcar market, and he sees more risk than potential upside.

"We are downgrading the shares of Trinity Industries from Buy to Hold as the stock is approaching our fair value estimate of $20, and as we believe there is likely more risk than potential upside in the near term as market fundamentals remain weak in the railcar space," said Baudendistel.

"We believe industry railcar orders will continue to bobble around at the already-low levels (we’re assuming orders will be down some sequentially in 1Q16), deliveries will pull back more significantly, and backlogs will continue to decrease—and all signs point to a continuation of those trends throughout the rest of 2016. None of this should come as a surprise, but with forward multiples at roughly mid-cycle levels currently, and considering our expectation that backlogs could continue to decline for several years, we do not believe there is much which will be revealed this earnings season which would cause investors to be considerably more bullish on the space," added the analyst.

For an analyst ratings summary and ratings history on Trinity Industries click here. For more ratings news on Trinity Industries click here.

Shares of Trinity Industries closed at $19.32 yesterday.

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