The new price target comes after the Houston, TX-based tank barge operator agreed to purchase the inland tank barge fleet of Seacor Holdings (CKH) for about $88 million in cash after yesterday's market close.
"With the transaction expected to close in early 2Q16, the announced transaction will further enhance Kirby's scale in the US inland tank barge market and we expect this to be accretive by $0.16-0.24 in annual earnings per share," Jefferies said in an analyst note.
The acquisition also further moves Kirby's exposure away from crude oil, the firm noted. Demand for barges moving crude oil is weakening, but demand for moving petchems and refined products remains strong, Jefferies added.
Shares of Kirby closed at $57.78 and Seacor stock closed at $51.49 on Tuesday.
Seacor is engaged in owning, operating, investing in and marketing equipment, primarily in the offshore oil and gas, shipping and logistics industries.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and good cash flow from operations.
As a counter to these strengths, the team also finds weaknesses including feeble growth in the company's earnings per share, disappointing return on equity and a generally disappointing performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: KEX