UPDATE: Citigroup Raises PT on Genesee & Wyoming on Solid 3Q Volumes

In a report published Monday, Citigroup analyst Christian Wetherbee reiterated a Neutral rating on Genesee & Wyoming (NYSE: GWR), and raised the price target from $94.00 to $100.00.

In the report, Citigroup noted, “We have marked to market Genesee & Wyoming's carloads for 3Q, which were stronger than our expectations at 6.8% versus our +4.7% target, although decelerating a bit from last quarter's growth of +7.7%. Additionally, the two highest yielding commodity groups trended well, Metallic Ores (+37.6%) and Intermodal (+12.7%), which should provide a mix tailwind to revenue. The weakest trending major commodity group was Food and Kindred Products (-6.4%), followed by Coal and Coke (-4.5%). We believe that Genesee and Wyoming is well positioned into its 3Q earnings report as top line growth is trending well, mix should be a tailwind to revenues and margin, synergies from the integration of RailAmerica provide for future earnings drivers, and a return to growth driven acquisitions sets up constructively for expanding market share.”

Genesee & Wyoming closed on Friday at $95.20.