Morgan Keegan Lowering Price Target On Genesee & Wyoming (GWR)

Morgan Keegan is lowering its price target on shares of Genesee & Wyoming GWR after it reported earnings. It still has an Outperform rating, but lowered its price target to $56 from $58. In a note to investors, Morgan Keegan writes, "The company continues to generate solid free cash flow, with $117.6 million generated in 2010 for a corresponding FCF yield of 5.3%. We are lowering our quarterly estimates for 2011, bringing FY11 down to $2.62 from $2.80. We are also lowering FY12 to $3.12 from $3.25. While our price target has declined to $56, we still believe the company's operations remain fundamentally solid, strategic growth opportunities remain and free cash flow generation remains strong. As such, we maintained our Outperform rating." Shares of GWR gained 7 cents yesterday to close at $52.88.