Morgan Keegan Reiterates Kirby Outperform, Raises PT

Morgan Keegan reiterated its Kirby KEX Outperform rating and raised its Kirby price target from $65 to $67 in a research report published today. In the report, Morgan Keegan states, "While profitability at both division's increased on a year-over-year basis, the transaction costs associated with recent acquisitions resulted in a 220 basis point deterioration in Kirby's operating margin to 16.3%. As a reminder, the company went on an acquisition spree in the first half of the year, committing to spend over $500 million in cash (as well as the assumption of debt and issuance of KEX equity) to buy three separate companies." Shares of Kirby were trading at $58.54 at the time of posting, up 3.01% from Wednesday's market close.