Dahlman Rose Reiterates Buy Rating, $74 PT on Genesee & Wyoming

In a report published Wednesday, Dahlman Rose & Co. reiterated its Buy rating and $74.00 price target on Genesee & Wyoming (NYSE: GWR).

Dahlman Rose noted, “GWR announced at our transportation conference last week that the Surface Transportation Board (STB) had arrived at a preliminary determination that the RA purchase was a minor transaction and would not have an anti-competitive effect. This should allow GWR to close the deal in early October. Given the current stock price, GWR is likely to go to the public arena for the equity portion of its financing, which could afford it another $0.08/sh EPS upside to our estimate. We remain constructive on GWR shares, which, despite the 20% run since the acquisition announcement, are up just 8% YTD, compared to 20% for the rail group.”

Genesee & Wyoming closed on Tuesday at $66.42.