Susquehanna analyst Bascome Majors has adjusted the price target for GATX Corporation (GATX, Financial), decreasing it from $165 to $160, while maintaining a Neutral rating on the stock. Despite the reduction, the firm remains optimistic about GATX's growth prospects, which it attributes to favorable supply-side conditions expected to persist through 2026.
GATX continues to be highlighted as having strong earnings growth visibility within Susquehanna's coverage. This confidence stems from ongoing supportive market dynamics, suggesting that the company is well-positioned to capitalize on these conditions in the coming years.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for GATX Corp (GATX, Financial) is $174.33 with a high estimate of $182.00 and a low estimate of $165.00. The average target implies an upside of 22.79% from the current price of $141.98. More detailed estimate data can be found on the GATX Corp (GATX) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, GATX Corp's (GATX, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for GATX Corp (GATX, Financial) in one year is $155.35, suggesting a upside of 9.42% from the current price of $141.98. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the GATX Corp (GATX) Summary page.
GATX Key Business Developments
Release Date: April 23, 2025
- Net Income: $78.6 million or $2.15 per diluted share for Q1 2025, compared to $74.3 million or $2.03 per diluted share for Q1 2024.
- Fleet Utilization - North America: 99.2% at quarter end.
- Renewal Success Rate - North America: 85.1%.
- Lease Price Index Renewal Rate Change: 24.5% with an average renewal term of 61 months.
- Total Investment Volume - North America: Over $227 million during the quarter.
- Asset Remarketing Income: Over $30 million generated in the quarter.
- Fleet Utilization - Europe: 95.1% at quarter end.
- Fleet Utilization - India: 99.6% at quarter end.
- Investment Volume - Rail International: Over $62 million during the first quarter.
- Full-Year Earnings Guidance: Expected to be in the range of $8.30 to $8.70 per diluted share.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- GATX Corp (GATX, Financial) reported a first-quarter net income of $78.6 million, up from $74.3 million in the same quarter last year.
- Fleet utilization in North America remained high at 99.2%, with a strong renewal success rate of 85.1%.
- The company achieved a renewal lease rate increase of 24.5% and an average renewal term of 61 months.
- GATX successfully placed over 5,700 railcars from its 2022 Trinity supply agreement, indicating strong demand.
- The engine leasing segment, including the RRPF joint venture with Rolls-Royce, performed well, reflecting robust demand for aircraft spare engines globally.
Negative Points
- First-quarter net maintenance expense was higher compared to the previous year, driven by increased tank compliance activity.
- The European railcar leasing market faces challenges with a stable but lower fleet utilization rate of 95.1%.
- Uncertainty around tariffs and economic conditions could potentially impact GATX's long-term growth.
- The intermodal market in Europe continues to face significant challenges, affecting overall utilization.
- Sequential lease rates were slightly down from the fourth quarter, indicating potential pressure on pricing.
