FBR Capital Downgrades CAI International (CAP) to Market Perform

FBR Capital downgraded CAI International (NYSE: CAP) from Outperform to Market Perform with a price target of $24.00.

Analyst John Mims commented, "We are downgrading shares of CAI International (CAP) to Market Perform from Outperform. CAP is up approximately 18% since October 2014 versus a gain of 8% in the S&P 500 index. Given our expectation for pricing headwinds to offset demand (and thus improved utilization) in 2015, we see shares trading more in line with the broader market. Our $24 price target is based on 8x our 2016E EV/EBITDA compared to a median five-year trailing median trading range of approximately 10x. CAP is currently trading at approximately 8x our 2015E EV/EBITDA. While our EPS estimates on CAP represent moderately higher growth than peers TGH and TAL, we believe that given relative share liquidity and the lack of a dividend, CAP will likely trade in line with the container leasing group."

For an analyst ratings summary and ratings history on CAI International click here. For more ratings news on CAI International click here.

Shares of CAI International closed at $22.18 yesterday.

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