CAI International (CAP -6.8%) shares are slumping after the company's Q3 results missed expectations. CEO Victor Garcia explained on the conference call, "the usual fall peak shipping season didn't materialize this year. That fact combined with the relatively weak demand from customers in the first half of the year has resulted in a somewhat tepid market for new containers and lease rates have remained very competitive.
Credit Suisse downgraded CAI following results to Neutral from Outperform and cut its PT to $26 ($28 previous). The firm cited limited capex opportunities and reduced utilization. Garcia stated on the call that "capital expenditures will also be moderate in the same range as Q3."