Kirby Corporation (KEX) PT Lowered to $107 at BofA Securities

BofA Securities analyst Ken Hoexter lowered the price target on Kirby Corporation (NYSE: KEX) to $107.00 (from $110.00) while maintaining a Buy rating.

The analyst comments "Given softening demand, we believe Kirby Corp.’s (KEX) Inland barge utilization could ease into the high-80’s in 3Q25 (from low- to mid-90’s in 2Q25), slightly below its 3Q25 target of ~90%, and near 3Q23’s levels (which had softened to high-80’s on impacts from lock closures, not soft demand). We anticipate the continued demand weakness extends the pressures from 2Q25 related to increased European chemical competition, refinery maintenance, and lighter crude oil cracks (which shifts some barrels into pipeline and away from barges). KEX typically sees seasonal 3Q utilization declines from better weather. Given what appears to be greater than anticipated demand softness (which we see as keeping spot rates flat- to slightly down sequentially), we anticipate KEX will move to reduce costs by pulling out a portion of its boat fleet. Of its 290 towboats in 2Q25, approximately 70 were chartered-in. At around $5k/day operating cost ($0.5 mil savings per boat/qtr), we estimate a reduction of 20 chartered-in vessels could provide up to 150 bps in margin relief. We note that Inland demand could see some upside from heavier crude imports that may ramp in 4Q25."

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