Morgan Keegan downgraded American Railcar Industries (ARII
) to market perform from outperform, citing factors such as share prices and the impact of planned rebuilding efforts.
Analyst Art Hatfield thinks the upside to current stock-price levels will be limited over the next six months. He says the company said it completed an initial evaluation of an April 2 tornado, which damaged a Marmaduke, Ark., tank car manufacturing plant. The time horizon for the plant to resume its tank railcar production is mid-to-late August. For now, he keeps his $1.52 2006 earnings per share and his $1.84 2007 EPS estimates. He notes that more information will become available when the company posts its first quarter results on May 8.