UPDATE: Stifel Nicolaus Downgrades GATX to Hold, Removes $55 PT on Expected Downturn

In a report published Tuesday, Stifel Nicolaus analyst Michael Baudendistel downgraded the rating on GATX (NYSE: GMT) from Buy to Hold, and removed the $55.00 price target.

In the report, Stifel Nicolaus noted, “Shares have performed nearly as well as the market this year. Shares have risen 12% YTD (providing a total return of over 13% when half of the company's 2.6% dividend yield is included) compared to the S&P return of 15%. We believe the company's near-term fundamentals remain strong. The company's Lease Price Index, which compares the rates on new leases to expiring leases, increased 32.3% in 4Q12 and 30.8% in 1Q13. The duration of the lease term on railcar renewals has steadily increased from a low of 36 months in 2Q09 to 65 months in 1Q13. We believe the magnitude of the orders placed for tank cars in 1Q13 were extraordinary and we do not expect a repeat of that magnitude of orders in the 2Q13 or the 3Q13.”

GATX closed on Monday at $48.50.