J.P. Morgan Maintains Overweight on RailAmerica

J.P. Morgan is out with its report today on RailAmerica RA, maintaining Overweight. In a note to clients, J.P. Morgan writes, "We continue to believe that EV/EBITDA is a more meaningful valuation metric for RA. At the present time GWR GWR is trading at EV/EBITDA and P/E multiples on our one-year blended forward estimates of 10.6x and 18.6x. We believe that a narrowing of the valuation gap between RA and GWR is possible if RA continues to realize solid margin expansion and EPS performance. We are maintaining our Overweight rating on RA." J.P. Morgan maintains an $18 PT on RA. Shares of RA closed Tuesday at $14.60, up 1.67% from Monday's close.