UPDATE: Stifel Downgrades Kansas City Southern (KSU) to Hold

(updating comment)

Stifel analyst David G. Ross downgraded Kansas City Southern (NYSE: KSU) from Buy to Hold with a price target of $162.00.

The analyst comments "We believe Kansas City Southern is well-positioned for the global supply chain tailwinds of the next decade (namely increased near-shoring and increased U.S./Mexico trade), but its stock has run up beyond our 12-month target price due mainly to rumors of a takeout bid that came out last Friday and were published in the August 1st edition of The Wall Street Journal. The upside potential for KSU near-term would be a significant offer from a large financial buyer, as we don't believe strategics would be allowed to bid for competitive reasons. Absent that, though, the shares are fairly/fully valued for what we see as a lackluster freight market the rest of this year. And since we aren't pinning our target price or rating on takeout speculation, we are moving to the sidelines and lowering our rating on the shares from Buy to Hold."

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 $172.76 yesterday.

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