Kirby Corp (NYSE:KEX) shares were up 6.2% on Wednesday after Bank of America named Kirby its top small and mid-cap Transport/Shipping pick.
The bank reiterated its Buy rating and raised its price objective to $182 from $169, citing upside in the company's Inland Marine and Power Generation segments.
Bank of America raised its 2026 and 2027 earnings per share estimates to $7.15 and $8.65, from $7.00 and $8.25, respectively, citing higher Power Generation revenue targets. Both estimates sit above Street consensus.
CEO David Grzebinski and CFO Raj Kumar said last month that inland rates continue to climb steadily, and that Power Generation revenue would double its installed base within the next 18 months, according to the note.
Power Generation, which accounts for 18% of revenue and 9% of EBIT, has built a backlog exceeding $1 billion, with about half tied to higher margin natural gas solutions.
Bank of America said the segment's margins could move toward double digits over time from roughly 6% in the first quarter of 2026, supported by behind the meter demand from data centers and industrial customers. Kirby is the exclusive US dealer for Kawasaki in the segment.
The bank said near term revenue could be uneven due to engine supply constraints, with some second quarter deliveries shifting to the second half of the year, but that execution remains intact.
Inland Marine, which makes up 47% of revenue and 66% of EBIT, continues to see climbing rates, with utilization in the low 90s and heavy Venezuelan crude supporting refinery utilization, the note said.
The segment may see modest pressure from the Calcasieu lock closure through October and fuel lags in the second quarter, though constrained capacity supports a path toward margins above 20% in the second half.