Nomura Securities Starts Kansas City Southern (KSU) at Buy

Nomura Securities initiates coverage on Kansas City Southern (NYSE: KSU) with a Buy rating and a price target of $133.00.

Analyst Matt Troy commented, "With a north-south network that runs through the central U.S. and Mexico's major industrial centers, KSU is uniquely positioned to benefit from the longterm secular trend of nearshoring, and the only rail offering gateway connections providing strategic interchange and transfer services for all six of the other Class Is. Hence, while KSU provides exposure to the positive trends driving enthusiasm for the rails (pricing power, modal share gain), it also offers the call optionality of 1) better underlying organic growth characteristics associated with faster-growing transborder trade, and 2) the most visible margin expansion potential. With a long runway of potential margin improvement and organic growth, we view KSU as the best secular growth story in Transports."

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 $115.25 yesterday.

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