Piper Jaffray Maintains PT, Rating On CAP

Piper Jaffray is maintaining its $29 price target and its Overweight rating on CAI International CAP based on 1Q reported EPS. In its report, Piper Jaffray writes, “CAP reported 1Q EPS of $0.65 vs PJC at $0.51 and consensus of $0.45. However, unforecasted items including a gain on sale to investors of $0.06, a reversal of a reserve of $0.04 and an adjustment of the residual value of $0.03 added $0.13. Lease revenue grew 82% y/y to $22.3m but was $2m below our forecast. Utilization remained strong at 98% but customer pick-ups of new equipment moderated more in line with historical seasonal trends. We expect lease outs to accelerate through 2Q into the primary shipping season. We are maintaining our '11/'12 estimates despite the beat on a more gradual growth of lease revenue. We expect shares to pull back, but believe the story remains intact. We maintain our OW & $29 target.” CAP closed yesterday at $26.82.