Wells Fargo Raises GWR And RA Estimates

Wells Fargo is raising its estimates on Genesee & Wyoming Inc. (NYSE: GWR).

“We raise GWR Q4 2010 EPS estimate to $0.70 from $0.45 bringing our 2010E to $2.11 from $1.86,” Wells Fargo writes. “Our GWR 2011E moves to $2.65 from $2.40. Our 6-12 month Valuation Range for GWR moves to $56-58 from $48-53 as we roll forward to our 2011E for our EV/EBITDA target (10.5x or $56) and 2012E EPS for our P/E target (20x $2.90E or $58).”

At the same time, Wells Fargo is raising its Q4 2010 adjusted EPS estimate on RailAmerica, Inc. (NYSE: RA) shares to $0.28 from $0.10 “bringing our 2010E to $0.54 from $0.36.”

“Our 2011E bumps to $0.79 from $0.66,” Wells Fargo writes. “Our 6-12 month Valuation Range for RA moves to $15-16 from $14-15 as we roll forward to 2011E for our EV/EBITDA target (7.0x or $16) and 2012E EPS for our P/E target (17x $0.86E or $15).”

Genesee & Wyoming Inc. currently trades at $52.79; RailAmerica trades at $12.78.