Piper Jaffray Reiterates CAP And TGH Overweight Rating

Piper Jaffray said that it believes the strong container leasing industry fundamentals experienced over the past 15 months will continue through '11 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.” Piper Jaffray said that it believes residual gains could be greater than the Street anticipates as the shipping lines may dispose of many "old" containers as supply remains tight, placing upward pressure on container prices. “We reiterate our Overweight ratings on both Textainer Group Holdings TGH and CAI International, Inc. CAP.” Textainer Group Holdings closed Wednesday at $28.80; CAI International closed at $18.87.