Kirby price target raised to $138 from $131 at BofA

BofA raised the firm’s price target on Kirby to $138 from $131 and keeps a Buy rating on the shares after hosting CEO David Grzebinski for a discussion on the U.S. Jones Act tank barging market, Kirby’s ability to post over 300 basis points of margin gains annually over the next 3 years at Inland Marine, and updates on its Distribution & Services segment. Given a 25% larger fleet than 2014 peak EPS, Kirby’s implied peak earnings power of $6.50/share is significantly understated given pricing increases, coastal gains, and D&S profits, the analyst tells investors in a research note.