Trinity Industries downgraded to Neutral at Susquehanna on valuation

Susquehanna downgraded Trinity Industries (TRN) to Neutral from Positive with a price target of $35, up from $34. The firm’s fundamental views toward the North American railcar cycle remain “largely unchanged,” says the analyst, who notes that rail equipment has been the strongest sub-sector the analyst covers since mid-August, with Wabtec (WAB) up 21%, Greenbrier (GBX) up 13%, and Trinity up 10%, all of which are above the S&P’s 6% advance in that time. Given the strength and move in shares, the firm cites valuation for its downgrade.