- American Railcar Industries (ARII +1.4%) is downgraded to Underweight from Hold at BB&T, which says the rail-car cycle has begun a multi-year cycle of declining annual deliveries.
- While ARII's earnings will remain elevated during 2016, the firm expects more meaningful EPS declines thereafter.
- Pricing of new cars and lease renewal rates have become extremely competitive during the last 90 days, which BB&T believes eventually will leave ARII's comparatively small backlog of 7.1K units vulnerable to weak conditions as it seeks to fill open slots.