UPDATE: JPMorgan Upgrades Kansas City Southern (KSU) to Overweight
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JPMorgan analyst Brian Ossenbeck upgraded Kansas City Southern (NYSE: KSU) from Neutral to Overweight with a price target of $275.00 (from $231.00).
The analyst comments "The company’s PSR-based operating plan established in 2019 gained momentum in 2020 despite challenging conditions and should help the network realize aboveaverage growth at high incremental margins in 2021 and beyond. Management’s confidence is evident in the multi-year growth and efficiency targets, which are the first to include a 55% operating ratio target with a definitive timeline. Increasing financial leverage should also add to the best-in-class EPS growth target. Unique growth opportunities are at the core of the company’s outlook, including refined product imports into Mexico, recovering automotive production, grain, and crude-byrail replacement (DRU). Midterm elections in Mexico represent a risk worth monitoring, but the longer term opportunities for near-shoring country also appear to be advancing despite weakening local business confidence."
Shares of Kansas City Southern closed at $259.00 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Hot Upgrades, Upgrades
Related EntitiesJPMorgan, Crude Oil
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