Dahlman Rose Upgrades Textainer Group Holdings (TGH) to Buy

Dahlman Rose upgraded Textainer Group Holdings (NYSE: TGH) to Buy.

Dahlman analyst says, "Textainer is the 'grand-daddy' of them all, having the longest history as a publicly traded company. It's the largest as measured in TEU, with 2.3 million. Textainer controls 19% of the container leasing market and is the largest seller of used containers. In addition, it is the exclusive supplier of leased containers to the US military. Textainer owns 51% of its container fleet and manages the remaining 49% for 16 owners. In addition, the company pays a dividend currently yielding 3.4% and has paid a dividend for 21 consecutive years.
We estimate capital spending this year will be in a range of $500 million to $700 million, with growth in both reefers (~20%) and dry boxes (~80%). Textainer is mostly a dry box company and decided to enter the reefer business in the past couple of years, but though it is not yet a major factor...We are estimating 2011 EPS of $3.09, up from $2.50 last year and growing to $3.37 in 2012."

For more ratings news on Textainer Group Holdings click here and for the rating history of Textainer Group Holdings click here.

Shares of Textainer Group Holdings closed at $33.96 yesterday.

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