Kansas City Southern (NYSE:KSU) Receives a Lower Rating From Bank of America (Merrill Lynch). Will Other Analysts Follow Suit?


Kansas City Southern (NYSE:KSU) Receives a Downgrade

Researchers at Bank of America (Merrill Lynch)’s equity division cut shares of Kansas City Southern (NYSE:KSU) from a Neutral to a Underperform rating today. Theses analysts currently have a PT of $81.00 on KSU equating to a -2.04% downside.

From a total of 19 analysts covering Kansas City Southern (NYSE:KSU) stock, 9 rate it a ”Buy”, 1 a “Sell”, and 12 a ”Hold”. This means that 41% of the ratings are positive. The highest target price is $112 while the lowest target price is $80. The mean of all analyst targets is $99 with a 19.12% above today’s ($82.69) stock price. Kansas City Southern was the topic of 16 analyst reports since August 20, 2015 according to the firm StockzIntelligence Inc. Topeka Capital Markets initiated shares on November 3 with “Buy” rating. Macquarie Research maintained shares with “Outperform” rating and $100 target share price in a report from an October 19. BMO Capital Markets maintained KSU stock in a recent report from October 19 with “Market Perform” rating. Barclays Capital maintained the rating on October 5. Barclays Capital has a “Underweight” rating and a $80 price target on shares. Finally, RBC Capital Markets maintained the stock with “Outperform” rating in a report issued on an October 19.

The stock increased 0.08% or $0.07 on December 3, striking $82.69. Approximately shares of stock traded hands. Kansas City Southern (NYSE:KSU) has declined 20.26% since May 1, 2015 and is downtrending. It has underperformed by 17.48% the S&P500.

Kansas City Southern is a transportation holding firm with domestic and international rail activities in North America that are focused on the north/south freight corridor connecting commercial and industrial markets in the central United States with industrial cities in Mexico. The company has a market cap of $9.02 billion.

According to Zacks Investment Research, “Kansas City Southern is a transportation holding company with two primary subsidiaries. The Kansas City Southern Railway Company, is one of seven Class I railroads operating in the United States. Kansas City Southern de Mexico, SA. de C.V. is one of three large regional railroads in Mexico. KCS also owns 50% of the Panama Canal Railway Company in Panama. The combined North American rail network comprises approximately 6,000 miles of rail lines that link commercial and industrial markets in the United States and Mexico.” Get a free copy of the Zacks research report on Kansas City Southern (KSU).