Jefferies & Company Raises CAI International Price Target

Jefferies & Company published a research report this morning on CAI International CAP raising their price target from $16.00 to $21.00. CAI had 3Q10 adjusted EPS of $0.39 which were $0.06 ahead of Jefferies & Co.'s estimate. CAI also had total revenue of $21.6M which was $1.6M higher than Jefferies & Co.'s estimate and operating expenses of $12.3M which were $500K lower than estimated. In regards to the increased price target Jefferies & Co. writes, "Our price target of $21 reflects a 7.5x multiple on an NTM EV:EBITDA basis. This multiple is in line with comparable container leasing companies. Risks to our investment thesis include a global economic slowdown and competition." CAI has a Buy rating and closed at $17.77 on Tuesday