JPMorgan Upgrades Kansas City Southern (KSU) to Neutral

JPMorgan analyst Brian Ossenbeck upgraded Kansas City Southern (NYSE: KSU) from Underweight to Neutral with a price target of $169.00 (from $142.00).

The analyst comments "KCS entered 2020 with positive operating momentum that we expect continues despite the challenging volume environment. However, the impact of COVID-19 on Mexico’s economy is a risk for KSU and its exposure to intra-country freight activity. In addition, Mexico’s populist president recently pulled the permits for a private investment and changed the power grid access rules to favor state-owned generators which negatively impacted business confidence and could dampen FDI. A resurgent auto industry would support 15-20% of KCS total revenue which would help offset challenges stemming from governmental support of Pemex which competes with KCS customers for importing refined products into the country."

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 $170.00 yesterday.

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