UPDATE - UBS Upgraded American Railcar Industries (ARII) to Neutral

UPDATE - UBS upgraded American Railcar Industries (NASDAQ: ARII) from Sell to Neutral. PT boosted from $17 to $27.

Analyst, Jason Feldman, said, "We see near-term risk to results as unlikely given 1) steady production levels, 2) an improved margin profile and 3) healthy order activity will likely lead to a sequential increase in 2Q12 backlog. ARII delivered a strong 1Q as the margin profile (gross margin +420bp qtr/qtr on flatdeliveries) is better than we had forecast. While allowing for some qtr/qtr variability, we see margins as sustainable near-term, and a healthy backlog gives visibility to sustained production levels at least through early 2013."

"Reflcting improved margins and backlog, we are raising our 2012E, 2013E and 2014E EPS to $.2.25, $2.50 and $2.35, from $1.40, $1.80 and $1.50."

To see more ratings on ARII, Click Here

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