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Investing.com - Evercore ISI has lowered its price target on Kirby Corporation (NYSE:KEX) to $109 from $122 while maintaining an Outperform rating, citing softening demand and utilization in the company’s inland barge fleet. The stock, currently trading at $82.23, has declined over 22% year-to-date and sits near its 52-week low of $80.45. According to InvestingPro analysis, the company appears undervalued relative to its Fair Value.
The firm adjusted its third-quarter earnings per share forecast to $1.64 from $1.72 previously, with full-year 2025 projections now at $6.30, representing 15% year-over-year growth. This adjustment follows Kirby’s second-quarter earnings release, which flagged slowing demand and softer utilization in its inland operations. Despite recent challenges, InvestingPro data shows Kirby maintains a healthy financial position with a "GOOD" overall health score and strong liquidity metrics.
Evercore attributes the softer demand to a shift in crude slate, with fewer imports from Canada and Venezuela, along with perfect weather conditions. The firm notes that Kirby’s Coastal unit is performing better than expected, while large power generation wins are helping improve revenue and margins in the Distribution and Services segment.
For 2026, Evercore lowered its earnings estimate to $6.80 from $7.15, projecting 8% year-over-year growth. This forecast assumes no volume, pricing, or margin improvement at the core inland business next year, with only modest growth in other segments and ongoing debt reduction.
Evercore expects Kirby’s third-quarter earnings report on October 29 to serve as a "clearing event" that could address concerns about potential pricing reversals. Despite reducing the price target, the firm maintains its Outperform rating, noting that significant pricing and margin declines are unlikely without a full-blown economic recession.
In other recent news, Kirby Corporation reported its Q2 2025 earnings, which showed a slight beat on both earnings per share (EPS) and revenue forecasts. The company achieved an EPS of $1.67, surpassing the projected $1.66, and revenue reached $855.45 million, slightly above the expected $852.51 million. Additionally, Kirby’s Board of Directors has authorized a new share repurchase program for up to 8 million additional shares of common stock. This new authorization adds to the company’s previous program, leaving approximately 8.8 million shares available for repurchase.
BTIG has reiterated its Buy rating on Kirby, maintaining a $125 price target, despite recent softness in inland barge utilization that appears to be transitory. In contrast, BofA Securities has lowered its price target for Kirby to $107, citing concerns about softening demand in the inland barge business. They expect utilization to ease into the high-80% range in the third quarter of 2025. These developments reflect the mixed outlook for Kirby, as the company navigates both positive earnings results and challenges in its barge operations.
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