UBS Cuts Price Target on American Railcar Industries (ARII) in Light of Fewer Expected 2H15 Deliveries

UBS maintained a Neutral rating on American Railcar Industries (NASDAQ: ARII), and cut the price target to $41.00 (from $55.00), in light of fewer expected 2H15 deliveries.

Analyst Eric Crawford commented, "In light of fewer expected 2H15 deliveries relative to 1H, modest margin headwinds (relative to 2Q) and declining backlog visibility (exacerbated by weak 2Q orders), we are lowering our 2H15 estimates. We estimate ARII will deliver 3,500 railcars in 2H15, and assume 1,000 of these will be delivered to its lease fleet, recognizing revenue on the remaining 2,500. Our forecast also assumes ~27% gross margins. Low steel prices should continue to be a tailwind, at the very least for 3Q results."

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

Shares of American Railcar Industries closed at $35.93 yesterday.

You May Also Be Interested In

• Unicycive Therapeutics (UNCY) PT Raised to $15 at Benchmark Following Q2 Results
• Jefferies Downgrades Sunway Healthcare Holdings (SUNMED:MK) to Hold
• Rubrik Inc (RBRK) PT Raised to $120 at Cantor Fitzgerald Into Q2 Earnings