Analyst Gregory Lewis from BTIG reiterated a Buy rating on Kirby and keeping the price target at $125.00.
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Gregory Lewis has given his Buy rating due to a combination of factors influencing Kirby’s stock. One of the primary reasons is the temporary nature of the recent decline in inland barge utilization, which is expected to recover as the crude slate at PADD 3 becomes more favorable. Additionally, the company is focusing on a significant buyback strategy, projecting approximately $400 million in free cash flow for both this year and the next, even in a scenario where earnings growth remains flat.
Furthermore, management’s confidence in the medium-term outlook is bolstered by the anticipated return of petchem volumes and stable coastal and KDS operations, which are expected to offset any short-term inland weaknesses. Despite lowering the 2026 EPS estimate, the valuation remains attractive with a price target of $125, reflecting a reasonable multiple of future earnings. Overall, these factors contribute to a positive long-term outlook for Kirby, justifying the Buy rating.
In another report released on September 11, Bank of America Securities also maintained a Buy rating on the stock with a $107.00 price target.