Kansas City Southern Upgraded to Buy by Bank of America (KSU)
Kansas City Southern (NYSE:KSU) was upgraded by equities researchers at Bank of America from a “neutral” rating to a “buy” rating in a research report issued on Friday, StockRatingsNetwork reports. The firm currently has a $113.00 price objective on the stock. Bank of America’s price objective points to a potential upside of 14.21% from the company’s current price.
The analysts wrote, “KCS enjoys industry leading volume growth given its exposure to the rapidly growing Midwest to South Central U.S., as well as Mexico’s ongoing industrialization (40% of its revenues are from Mexico). KCS’ revenues are driven mainly by Industrial, Chemical and Ag (and to a lesser extent Coal, Intermodal and Auto). Given its above industry average growth, KCS’ shares typically trade at a 5-6 point premium to the other Class I rails.”
Other equities research analysts have also recently issued reports about the stock. Analysts at Morgan Stanley reiterated an “overweight” rating on shares of Kansas City Southern in a research note on Thursday, April 17th. They now have a $102.00 price target on the stock. Separately, analysts at BMO Capital Markets raised their price target on shares of Kansas City Southern from $100.00 to $105.00 in a research note on Thursday, April 17th. Finally, analysts at Zacks downgraded shares of Kansas City Southern from an “outperform” rating to a “neutral” rating in a research note on Monday, April 14th. They now have a $100.00 price target on the stock. Two equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and five have given a buy rating to the company. The stock currently has an average rating of “Hold” and a consensus price target of $108.20.
Shares of Kansas City Southern (NYSE:KSU) opened at 98.94 on Friday. Kansas City Southern has a 1-year low of $88.56 and a 1-year high of $125.96. The stock’s 50-day moving average is $100.3 and its 200-day moving average is $108.5. The company has a market cap of $10.915 billion and a P/E ratio of 32.02.
Kansas City Southern (NYSE:KSU) last posted its quarterly earnings results on Wednesday, April 16th. The company reported $1.05 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.99 by $0.06. The company had revenue of $607.40 million for the quarter, compared to the consensus estimate of $600.34 million. During the same quarter last year, the company posted $0.89 earnings per share. Kansas City Southern’s revenue was up 9.9% compared to the same quarter last year. Analysts expect that Kansas City Southern will post $4.66 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Wednesday, July 2nd. Shareholders of record on Monday, June 9th will be paid a dividend of $0.28 per share. This represents a $1.12 annualized dividend and a dividend yield of 1.13%. The ex-dividend date is Thursday, June 5th.
Kansas City Southern (NYSE:KSU) is a transportation holding company with domestic and international rail operations in North America that are strategically focused on the growing north/south freight corridor connecting key commercial and industrial markets in the central United States with industrial cities in Mexico.
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