Analyst Ken Hoexter of Bank of America Securities reiterated a Buy rating on Kirby (KEX – Research Report), reducing the price target to $123.00.
Ken Hoexter has given his Buy rating due to a combination of factors influencing Kirby’s market position and financial outlook. Despite the weather-related delays impacting the first quarter, the market remains tight, and utilization rates are expected to increase, reflecting strong demand. The company’s day rates are firming, indicating a positive trend in revenue generation.
Moreover, while there are slight headwinds in the Coastal Marine segment due to shipyard dockings, the expectation is for a rebound in margins throughout the year. In the Distribution & Services segment, stability in Commercial & Industrial and Power Generation offsets weaknesses in Oil & Gas, supporting a balanced revenue outlook. Although the price objective has been adjusted to $123, the overall valuation remains attractive, with anticipated margin improvements and EPS growth supporting the Buy recommendation.
In another report released on March 25, Stifel Nicolaus also maintained a Buy rating on the stock with a $135.00 price target.