Analyst Gregory Lewis from BTIG reiterated a Buy rating on Kirby (KEX – Research Report) and increased the price target to $125.00 from $115.00.
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Gregory Lewis has given his Buy rating due to a combination of factors that suggest a positive outlook for Kirby’s stock. One of the primary reasons is the strengthening inland barge activity, which has shown significant volume growth both sequentially and year-over-year. This improvement is expected to support better pricing and higher margins, particularly as fleet growth remains stagnant, creating a favorable supply-demand dynamic.
Additionally, the upper river activity has shown robust growth, which can positively impact the Gulf Coast operations due to the longer barge moves. Coastal barge pricing is also on an upward trend, with term-contract pricing seeing significant year-over-year increases. This, combined with a slowdown in fleet drydockings, is anticipated to enhance coastal margins in the coming years. Furthermore, the valuation increase to a price target of $125 reflects confidence in Kirby’s ability to capitalize on these trends, with the stock trading at a favorable multiple compared to historical averages.
In another report released on June 23, Bank of America Securities also maintained a Buy rating on the stock with a $125.00 price target.