American Railcar Industries (ARII) Falls on KeyBanc Downgraded to Hold
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Price: $69.97 --0%
Rating Summary:
1 Buy, 8 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
1 Buy, 8 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Shares of American Railcar Industries (NASDAQ: ARII) are sharply lower Monday after getting downgraded at KeyBanc earlier.
KeyBank downgraded shares from Buy to Hold and cut 2012 estimates to $0.95 from $1.70 (consensus $1.53), and 2013 estimate to $1.48 from $1.83 (consensus $2.07.
The firm comments, "In the near term we expect sales from its domestic OE railcar business will be the primary driver of earnings, and the pace of orders for the industry will be the dominant driver of share price. Additionally, we think the aforementioned shift to leasing is likely to result in either: A) earnings misses relative to consensus as the sell-side and investors may have difficulty accurately modeling the impact of increasing lease exposure on revenue and manufacturing margins; or B) sizable reductions to near-term estimates as analysts take a conservative view toward the near-term impact of the shift. Therefore, despite our longer-term positive view on ARII's strategic positioning, we view the near-term risks regarding a potential industry order slowdown and a misunderstanding of ARII's near-term earnings power as reducing the risk/reward profile for the shares."
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 are down 7.8 percent mid-day to $25.44.
KeyBank downgraded shares from Buy to Hold and cut 2012 estimates to $0.95 from $1.70 (consensus $1.53), and 2013 estimate to $1.48 from $1.83 (consensus $2.07.
The firm comments, "In the near term we expect sales from its domestic OE railcar business will be the primary driver of earnings, and the pace of orders for the industry will be the dominant driver of share price. Additionally, we think the aforementioned shift to leasing is likely to result in either: A) earnings misses relative to consensus as the sell-side and investors may have difficulty accurately modeling the impact of increasing lease exposure on revenue and manufacturing margins; or B) sizable reductions to near-term estimates as analysts take a conservative view toward the near-term impact of the shift. Therefore, despite our longer-term positive view on ARII's strategic positioning, we view the near-term risks regarding a potential industry order slowdown and a misunderstanding of ARII's near-term earnings power as reducing the risk/reward profile for the shares."
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 are down 7.8 percent mid-day to $25.44.
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