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Kirby Shares Surge Over 7% as BofA Lifts Price Target to $182
Shares of Kirby Corporation (NYSE: KEX) surged more than 7% on Wednesday following a positive analyst note from BofA Securities. The firm increased its price target on the stock to $182 from a previous $169, while reiterating its "Buy" rating.
The upgraded outlook is based on anticipated revenue growth in Kirby’s Marine Transportation and Power Generation divisions. BofA Securities analyst Ken Hoexter highlighted the Power Generation segment as a significant growth driver, fueled by increasing "behind-the-meter" power demand from data centers and other industrial clients.
Company management recently noted that its Power Generation backlog has surpassed $1 billion. In a recent conference call, Kirby executives stated they expect to double the segment's installed base within the next 18 months. They also reported that inland marine transportation rates continue to climb steadily.
AdThe Power Generation division, which currently accounts for 18% of revenue, is expected to become more profitable. According to management, approximately half of its backlog consists of higher-margin natural gas solutions. This shift is projected to help drive the segment's margins from around 6% toward double-digits over time. In line with this optimism, BofA raised its 2026 earnings per share (EPS) estimate for Kirby to $7.15.
Adding to the positive sentiment, Stephens analyst Jack Atkins also initiated coverage on Kirby with an "Overweight" rating. While BofA noted that near-term revenue could be uneven due to engine supply constraints, the firm views the company's overall execution as solid and sees the Power Generation business as a key factor in achieving its 2026 growth targets.