Morgan Keegan Raises Estimates On Genesee & Wyoming, Inc. (GWR)

Morgan Keegan is raising its estimates on Genesee & Wyoming, Inc. GWR, but is maintaining its $58 price target on shares. It still rates GWR at Outperform. In a note sent to investors, Morgan Keegan writes, "As we expected, the 45G Short-Line Railroad Tax Credit was extended for two years when the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 was signed into law in December. The tax credit, which was extended through January 1, 2012, will be retroactively applied to 2010 and allows GWR to claim a tax credit or assign the tax credit to a third party for up to $0.50 per dollar spent on capital improvements, capped at $3,500 per mile of track. We are boosting our Q4:10 estimate by $0.25 to reflect the full 2010 impact of the retroactive application of the tax credit to the beginning of 2010. Additionally, we are raising our FY11 and FY12 estimates." Shares of GWR gained 34 cents yesterday to close at $53.24.