Jefferies Raises Price Target on Kirby Corporation (KEX) Due to Strong Upside

Jefferies is reiterating its Buy rating on shares of Kirby Corporation (NYSE: KEX) and is raising its price target from $73 to $77 following its third quarter results.

The company released its quarterly results ahead of expectations as operating profits in the Company's Diesel Engine Services business were better than expected, and due to lower than expected interest expense.

The firm notes the strong acceleration in tank barge orders, but believes market demand will grow at an equivalent rate.

An analyst at Jefferies comments, "We are increasing our 4Q11 and 2012 EPS estimates to reflect our expectations for continued strong pricing momentum in the marine transportation business segment, continued strong sales in the diesel engine services segment as the United Holdings acquisition continues to perform better than expected, and lower interest expenses expectations."

For Q4 and FY11, Jefferies raised its EPS estimates from $0.84 and $3.13 to $1.00 and $3.35. For FY12, the firm increased its estimate from $3.65 to $3.90.

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 $63.24 yesterday.

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