TGH Fundamentals Remain Vibrant, Piper Jaffray Reports

Piper Jaffray, which raised its price target on shares of Textainer Group TGH to $39 from $35, said that it believes the strong container leasing industry fundamentals experienced over the past 16 months will continue through 2011 and into '12. “Global containerized trade continues to remain robust and the shipping lines continue to rely heavily on the container lessors, thereby giving the lessors pricing power,” Piper Jaffray writes. “While the manufacturers have returned to full productivity, we believe supply will continue to be very tight given the global container fleet remains ~3% below peak levels. We are maintaining our 4Q10 and FY '11/'12 EPS estimates but feel they are conservative on multiple fronts. We believe TGH is well positioned to capitalize on evolving growth opportunities.” Textainer Group closed Monday at $33.79.