Ken Hoexter, an analyst from Bank of America Securities, maintained the Buy rating on Kirby (KEX – Research Report). The associated price target remains the same with $125.00.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
Ken Hoexter has given his Buy rating due to a combination of factors that suggest a positive outlook for Kirby Corp. The company is experiencing tight capacity, which is favorable for margin expansion, particularly in its Inland Marine segment. The CEO of Kirby, Dave Grzebinski, highlighted that inland spot rates are on an upward trend, and the company anticipates a net industry contraction of barges, which supports a solid backdrop for margin progression.
Additionally, Kirby’s Coastal segment is expected to see significant margin improvements, with rates increasing and no new capacity expected for the next two years. The Distribution and Services segment also shows promise with targeted double-digit margins in the long term. These factors, combined with Kirby’s strong utilization rates and strategic positioning, underpin Hoexter’s confidence in the company’s future performance, justifying the Buy rating and a price objective of $125.
According to TipRanks, Hoexter is a 3-star analyst with an average return of 1.6% and a 49.20% success rate. Hoexter covers the Industrials sector, focusing on stocks such as CSX, XPO, and Knight Transportation.