Stifel cuts Kirby stock price target to $135, maintains Buy rating

On Friday, Stifel analysts revised the price target for Kirby Corporation (NYSE:KEX) stock, reducing it slightly to $135 from the previous $136, while reiterating a Buy rating. Currently trading at $109.19, InvestingPro analysis suggests the stock is fairly valued. The firm’s analysts acknowledged Kirby’s solid performance in the recent quarter, despite facing headwinds from weather-related delays. They noted that the company’s marine businesses remain robust due to a tight supply environment and growing demand to transport chemical and petroleum products, spurred by increased U.S. oil and gas production. With a market capitalization of $6.31 billion and a GOOD Financial Health Score, Kirby demonstrates strong fundamentals.

Kirby’s Distribution and Services (D&S) business is projected to perform flat or possibly decline compared to prior growth expectations for 2025. However, the analysts expect the marine segment to continue experiencing pricing increases, which should contribute to higher earnings. They expressed confidence in the fundamental strength of Kirby’s operations and suggested that the company is currently at the midpoint of its business cycle.

The Stifel report anticipates that Kirby will see continued earnings per share (EPS) growth in both 2025 and 2026. This growth, coupled with a strong fundamental backdrop, is expected to lead to further expansion of the company’s market multiples. The analysts’ outlook for Kirby remains positive, signaling optimism for the company’s financial performance in the coming years.

Kirby Corporation’s recent quarter’s success, despite challenges, and the expectation for continued EPS growth, reflects the company’s resilience and potential for future gains. The slight adjustment in the price target is a nuanced move by Stifel, taking into account the various factors influencing Kirby’s business trajectory.

In other recent news, Kirby Corporation has been the focus of analysis from two major firms. BTIG analysts have upheld their Buy rating and a $140.00 price target for Kirby, pointing to a potential improvement in the company’s financial performance despite a recent decline in the company’s stock. They expect the company to drive inland barge pricing higher in 2025, pushing Kirby’s 2025 inland margins to around 23%.

On the other hand, BofA Securities revised its price target for Kirby to $142.00 from the previous $147.00, while maintaining a Buy rating. The firm cited extended maintenance on Gulf Coast crackers, which decreased Kirby’s inland barge utilization, as a factor in the adjustment. However, BofA Securities remains optimistic about Kirby’s business fundamentals, pointing to the company’s strong financial position and the supportive inland supply and demand.

These are recent developments, reflecting the ongoing analysis and expectations of prominent financial firms. Both BTIG and BofA Securities have expressed optimism about Kirby’s future performance, despite some challenges. The company’s financial health and the potential for increased margins in 2025 are key points of interest for investors.

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