Trinity Industries shares could reach $48-Barron's

NEW YORK, July 20 (Reuters) - Shares of utility Trinity Industries Inc's (TRN.N: Quote, Profile, Research, Stock Buzz), which makes wind towers, could rise to $48 from about $35 per share on demand for wind-generated electricity, Barron's said on Sunday.

Trinity also makes railcars and barges, and softening rail demand has lowered the company's shares 27 percent over the past year, but that cyclical business is being increasingly offset by demand for wind power.

Trinity's wind-energy backlog ballooned 128 percent to nearly $1.6 billion in the first quarter, and as its backlog expands, so will its valuation, Barron's said in its July 21 edition.

At $35, Trinity's shares trade at 10.8 times 2008 earnings, cheaper than other machinery stocks that trade at 12.1 times earnings.

"We believe investors should focus on Trinity's diversification and wind-energy catalysts," wrote KeyBanc analyst Steve Barger, who has a $48 price target on the stock. (Reporting by Helen Chernikoff, editing by Maureen Bavdek)