FBR Capital Downgrades Kansas City Southern (KSU) to Market Perform

FBR Capital downgraded Kansas City Southern (NYSE: KSU) from Outperform to Market Perform with a price target of $75.00 (from $95.00) saying they expect a near-term soft patch in the company's long-term growth trajectory.

"Continued weakness for coal and grain in the near term, as well as a temporary deceleration of growth in the company's automotive and intermodal franchises, should keep a lid on growth over the next several quarters, and in light of this, we see material risk to near-term earnings estimates and question the sustainability of KSU's premium earnings multiple until growth reaccelerates," the analyst comments.

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 $82.49 yesterday.

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