KEX - Anchors Away For Kirby As Chemical And Refinery Activity Drives More Barging Demand
- Kirby shares have sold off sharply since the announcement of an agreement to supply barging services to an offshore wind project; investors may be fretting over future margins/capex here.
- The core inland barge business is getting significantly better, as growing chemical/petrochemical output and limited capacity are leading to higher prices and, down the line, better margins for KEX.
- Capital allocation is a watch-item, but KEX stock looks modestly undervalued now and has traded at significantly higher multiples during past up-cycles.
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Anchors Away For Kirby, As Chemical And Refinery Activity Drives More Barging Demand