Wells Fargo Upgrades RailAmerica Inc. (RA) to Outperform; Raising Estimates on Strategic and Operational Improvements
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Price: $12.77 +0.16%
Rating Summary:
0 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
0 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wells Fargo upgraded RailAmerica Inc. (NYSE: RA) from Market Perform to Outperform, price target raised from $24-25 to $26-27.
Analyst, Anthony P. Gallo, said, "Following RA's Q1 2012 earnings and 4/26/12 earnings conference call, we raise our 2012 and 2013 EPS estimates to $1.31 and $1.50 from our pre-report estimates of $1.14 and $1.40, respectively. We think Q1 2012 adjusted EPS of $0.26 (versus our $0.16 estimate) is more representative of results as compared to the adjusted $0.28 that we referenced in our 4/25/12 "First Look" note. We feel some higher incentive compensation should continue given recent performance. Lower depreciation expense should also hold given the asset-life reassessment. We think our new 2012 estimates align with management operational and carload guidance (formal EPS guidance is not offered) but is nonetheless conservative. We prefer to take a conservative approach given a few "moving parts" in Q1 2012 that we think makes it more difficult to assess each aspect of recent strong performance."
For an analyst ratings summary and ratings history on RailAmerica Inc. click here. For more ratings news on RailAmerica Inc. click here.
Shares of RailAmerica Inc. closed at $23.15 yesterday.
Analyst, Anthony P. Gallo, said, "Following RA's Q1 2012 earnings and 4/26/12 earnings conference call, we raise our 2012 and 2013 EPS estimates to $1.31 and $1.50 from our pre-report estimates of $1.14 and $1.40, respectively. We think Q1 2012 adjusted EPS of $0.26 (versus our $0.16 estimate) is more representative of results as compared to the adjusted $0.28 that we referenced in our 4/25/12 "First Look" note. We feel some higher incentive compensation should continue given recent performance. Lower depreciation expense should also hold given the asset-life reassessment. We think our new 2012 estimates align with management operational and carload guidance (formal EPS guidance is not offered) but is nonetheless conservative. We prefer to take a conservative approach given a few "moving parts" in Q1 2012 that we think makes it more difficult to assess each aspect of recent strong performance."
For an analyst ratings summary and ratings history on RailAmerica Inc. click here. For more ratings news on RailAmerica Inc. click here.
Shares of RailAmerica Inc. closed at $23.15 yesterday.
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