On Thursday, Stifel has raised its price target for Kirby Corporation (NYSE:KEX) to $136 from $132, while maintaining a "Buy" rating on the shares. The adjustment follows a period where Kirby's marine operations faced weather-related challenges, yet the company experienced stronger than expected margins and pricing growth.
The firm noted that despite the second-quarter setbacks due to weather conditions, Kirby Corporation's business dynamics are showing positive signs. The demand for Kirby's services remains strong, and the supply of barges is decreasing. This combination is contributing to a continued upward trajectory for both the inland and coastal segments of the company's operations.
Stifel's analysis indicated that while Kirby's progress may not follow a perfectly linear path, due to factors such as weather, seasonality, and irregularities in product delivery, the overall momentum is expected to persist. The firm anticipates that there is substantial potential for further gains in the value of Kirby's shares.
The company's ability to accelerate margins and pricing faster than anticipated, even in the face of operational hurdles, underpins Stifel's positive outlook. The firm's commentary suggests that the market conditions are favorable for Kirby, with a firm demand for its services and a diminishing supply of barges, which is a key asset in the marine transportation industry.
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