Citi Downgrades Burlington Northern (BNI) to Sell

April 27, 2009 10:01 AM EDT

Citi downgrades Burlington Northern (NYSE: BNI) from Hold to Sell. Price target raised $3 to $61.

Citi analyst says, "Like Canadian National (NYSE: CNI), Burlington is the only other Class I now trading at a premium to 10 year median valuation (2% premium vs. 11% group discount). While shares have rallied a lesser 32% off March lows, we’d look to harvest gains today. While BNI is one of the best run railroads, EPS trajectory over the next 2-4 quarters is among the shallowest of Class Is given headwinds of underwater fuel hedge of $0.35 for the remainder of '09, higher exposure to pressured export grain traffic & a deteriorating outlook for domestic coal."

Burlington Northern Santa Fe Corporation (BNSF) is a holding company. The Company, through its subsidiaries, is engaged primarily in the freight rail transportation business.

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