Goldman Sachs Resumes Kansas City Southern (KSU) at Neutral

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Goldman Sachs resumes coverage on Kansas City Southern (NYSE: KSU) with a Neutral rating and $74 price target as the shares have outperform the sector since the end of the 2009 recession.

The firm comments, "The company has done an impressive job of improving operations, increasing prices, and expanding the operating margin. After posting the lowest operating margin in the industry in 2009, we think the company can post the highest margin among the US rails (31.1%) when the book closes on 2012. The valuation premium of 50% above the US peer group keeps us on the sidelines, however, as the market has already discounted the positives."

For an analyst ratings summary and ratings history on Kansas City Southern click here. For more ratings news on Kansas City Southern click here.

Shares of Kansas City Southern closed at $68.66 yesterday, with a 52 week range of $45.63-$79.50.

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