Morgan Keegan Downgrades American Railcar

Moves the stock to market perform from outperform

Morgan Keegan downgraded American Railcar Industries (ARII) to market perform from outperform, citing factors such as share prices and the impact of planned rebuilding efforts.

Analyst Art Hatfield thinks the upside to current stock-price levels will be limited over the next six months. He says the company said it completed an initial evaluation of an April 2 tornado, which damaged a Marmaduke, Ark., tank car manufacturing plant. The time horizon for the plant to resume its tank railcar production is mid-to-late August. For now, he keeps his $1.52 2006 earnings per share and his $1.84 2007 EPS estimates. He notes that more information will become available when the company posts its first quarter results on May 8.

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