Textainer, CAI Intl jump as KBW upgrades on strong industry outlook

Triton International

19/10/2020 19:52

** Brokerage Keefe, Bruyette and Woods (KBW) says
fundamentals for the container leasing industry drastically
improved in Q3, and underlying strength can support a
constructive operating environment through at least early 2021 
    ** Upgrades lessors Textainer Group  TGH.N  and CAI
International  CAI.N  to "outperform" from "market perform" and
raises profit estimates significantly for the two companies 
    ** Shares of CAI and TGH jump 11.4% and 12.6%, respectively,
to hit their highest in more than two years
    ** Biggest driver of EPS changes is higher leasing revenues
due to the sharp improvement in operating metrics intra-quarter,
particularly utilization rates - KBW analyst Michael Brown
    ** KBW says CAI to benefit from simplification efforts to
refocus on core container leasing franchise, and continues to
view CAI as an attractive acquisition target in an industry ripe
for consolidation
    ** Keeps its recently revised estimates for Triton
International  TRTN.N  unchanged; TRTN shares rise 0.6%
    ** Including session moves, TGH and CAI have gained ~51% and
6%, respectively, so far this year, while TRTN has declined 7.5%

 (Reporting by Susan Mathew in Bengaluru)
 ((susan.mathew@thomsonreuters.com; +91-80-6287-2704;))