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Cantor Fitzgerald Upgrades Kirby Corporation (KEX) to Buy; Expands Into Coastal Tank Barge Sector

March 15, 2011 8:23 AM EDT
KEX Hot Sheet
Rating Summary:
    11 Buy, 0 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Cantor Fitzgerald upgraded Kirby Corporation (NYSE: KEX) from Hold to Buy. PT increased from $54 to $65.

Cantor analyst says, "Over the weekend Kirby announced it reached an agreement to acquire K-Sea Transportation Partners (NYSE: KSP)(NotCovered), an operator of tank barges and tugboats primarily involved in coastal transportation in the U.S. The purchase price is approximately $600 million, including $335 million of equity and $265 million in the refinancings of KSP's debt. The acquisition is expected to close in June or July 2011...The purchase would expand the company's barge operations, where it's already a leading operator in inland barge transportation, to include the coastal trade."

"Management expects to realize synergies primarily relating to cost savings initially, but cost savings in 2011 are expected to be offset by one-time expenses related to the purchase. As such, we maintain our forecasts for the time being. Our 2011 EPS forecast is $2.68 and 2012 EPS forecast is $2.88."

For more ratings news on Kirby Corporation click here and for the rating history of Kirby Corporation click here.

Shares of Kirby Corporation closed at $56.33 yesterday, with a 52 week range of $35.78-$60.00.


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