FreightCar America (RAIL) Falls on KeyBanc Downgrade to Underweight
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Price: $7.19 -3.1%
Rating Summary:
3 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 11 | New: 26
Rating Summary:
3 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 11 | New: 26
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Shares of FreightCar America (NASDAQ: RAIL) are lower mid-day Monday after getting downgraded at KeyBanc earlier.
KeyBanc cut FreightCar America from Hold to Underweight and cut FY12 estimate to $2.05 from $2.15 (consensus $1.89), and FY13 to $1.30 from $1.41 (consensus $2.41.
The analyst commented, "We expect RAIL is likely to monetize most of its roughly 8,300 car backlog (including about 3,300 rebuilds) in 2012. Additionally, as we look at its primary end market, coal cars, we think there will always be replacement volume for which the Company will be able to bid. That said, as we think about the potential that natural gas prices will remain extremely low for the foreseeable future in the context of increasing political headwinds around the mining and burning of coal, we think coal's share of domestic power generation could continue to shrink and that investments in new coal-related assets will be harder to justify."
For an analyst ratings summary and ratings history on FreightCar America click here. For more ratings news on FreightCar America click here.
Shares of FreightCar America are down 7.4 percent mid-day to $24.22.
KeyBanc cut FreightCar America from Hold to Underweight and cut FY12 estimate to $2.05 from $2.15 (consensus $1.89), and FY13 to $1.30 from $1.41 (consensus $2.41.
The analyst commented, "We expect RAIL is likely to monetize most of its roughly 8,300 car backlog (including about 3,300 rebuilds) in 2012. Additionally, as we look at its primary end market, coal cars, we think there will always be replacement volume for which the Company will be able to bid. That said, as we think about the potential that natural gas prices will remain extremely low for the foreseeable future in the context of increasing political headwinds around the mining and burning of coal, we think coal's share of domestic power generation could continue to shrink and that investments in new coal-related assets will be harder to justify."
For an analyst ratings summary and ratings history on FreightCar America click here. For more ratings news on FreightCar America click here.
Shares of FreightCar America are down 7.4 percent mid-day to $24.22.
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