American Railcar Industries, Inc. (ARII)

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American Railcar Falls on Downgrade
Tuesday March 18, 11:53 am ET
American Railcar Industries Shares Fall After UBS Analyst Downgrades Stock to 'Sell'


NEW YORK (AP) -- Shares of American Railcar Industries Inc. are plunging after a UBS analyst cut the stock to "Sell."
Analyst Jason Feldman predicts the railroad car manufacturer will be hurt as the demand for railcars weaken this year. He also forecasts that lower rail volumes and excess capacity will pressure pricing and margins for new railcars.

Feldman said he also believes the stock is overvalued after its 38 percent surge since late January. The analyst cut his earnings estimates for 2009 and 2010, but maintained his prediction for this year.

Feldman had the stock at "Neutral."

Shares of the St. Charles, Mo.-based company fell $2.10, or 9.7 percent, to $19.64 in morning trading. The stock has traded between $12.95 and $43.46 in the past year.