Kirby, the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Ken Hoexter from Bank of America Securities reiterated a Buy rating on the stock and has a $107.00 price target.
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Ken Hoexter has given his Buy rating due to a combination of factors, despite the current challenges facing Kirby Corp. The company is experiencing a softening in demand, which is expected to lead to a decrease in inland barge utilization to the high 80% range in the third quarter of 2025. This is a slight decline from the previous quarter and is attributed to increased competition, refinery maintenance, and changes in crude oil transportation preferences. However, Kirby’s management plans to mitigate these challenges by reducing costs, including pulling out a portion of its boat fleet, which could provide some margin relief.
Although the revenue outlook is softer than expected, Ken Hoexter reiterates the Buy rating due to the tight supply and demand backdrop in the industry. The price objective has been adjusted to $107, reflecting a slightly lower valuation multiple due to near-term demand softness. Despite these adjustments, the long-term growth prospects and strategic cost management initiatives support a positive outlook for Kirby Corp., justifying the Buy recommendation.
Hoexter covers the Industrials sector, focusing on stocks such as CSX, ArcBest, and XPO. According to TipRanks, Hoexter has an average return of 1.9% and a 47.40% success rate on recommended stocks.