GATX Corporation (GMT) – Bull of the DayWe maintain our Outperform recommendation on GATX Corp. (GMT). The company's second quarter adjusted earnings surpassed the Zacks Consensus Estimate and improved year over year, primarily on higher lease rates, better asset utilization, and improvement in lease terms alongside higher demand for locomotives.
We expect these positive factors to continue to aid the company s top and bottom line results. In addition, the company's focus on investments to increase its asset base and expansion in emerging markets for tapping potential opportunities remain encouraging for future growth.
Going forward, GATX Corp. enjoys a healthy balance sheet and is committed towards enhancement of shareholder value through strong dividend payments. Hence, we reiterate our Outperform rating with a target price of $49, based on 17.9x our earnings estimate for 2012.
GATX CORP (GMT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research