Deutsche Bank Upgrades Kansas City Southern (KSU) to “Buy”

Kansas City Southern (NYSE:KSU) was upgraded by Deutsche Bank from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Monday, The Fly reports. The firm presently has a $120.00 target price on the transportation company’s stock. Deutsche Bank’s price target points to a potential upside of 13.98% from the stock’s current price.

Other research analysts have also recently issued research reports about the company. Cowen raised Kansas City Southern from a “market perform” rating to an “outperform” rating and upped their price target for the company from $124.00 to $138.00 in a research report on Wednesday, August 29th. Loop Capital upped their price target on Kansas City Southern to $140.00 and gave the company a “buy” rating in a research report on Tuesday, August 28th. Bank of America dropped their price target on Kansas City Southern from $134.00 to $130.00 and set a “buy” rating on the stock in a research report on Monday, October 1st. Raymond James upped their price target on Kansas City Southern from $128.00 to $133.00 and gave the company a “strong-buy” rating in a research report on Friday, August 31st. Finally, Zacks Investment Research cut Kansas City Southern from a “hold” rating to a “sell” rating in a research report on Monday, September 24th. Five research analysts have rated the stock with a hold rating, six have given a buy rating and one has issued a strong buy rating to the stock. Kansas City Southern presently has a consensus rating of “Buy” and an average price target of $123.33.

Shares of NYSE:KSU opened at $105.28 on Monday. The firm has a market capitalization of $11.57 billion, a price-to-earnings ratio of 20.11, a price-to-earnings-growth ratio of 1.43 and a beta of 0.82. The company has a quick ratio of 0.85, a current ratio of 1.20 and a debt-to-equity ratio of 0.54. Kansas City Southern has a 1 year low of $99.47 and a 1 year high of $120.34.

Kansas City Southern (NYSE:KSU) last announced its quarterly earnings data on Friday, July 20th. The transportation company reported $1.54 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.52 by $0.02. The firm had revenue of $682.40 million during the quarter, compared to the consensus estimate of $686.12 million. Kansas City Southern had a return on equity of 12.01% and a net margin of 36.91%. The business’s revenue for the quarter was up 4.0% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.33 EPS. On average, equities analysts forecast that Kansas City Southern will post 6.08 EPS for the current fiscal year.

In other news, CFO Michael W. Upchurch sold 5,442 shares of the company’s stock in a transaction on Thursday, July 26th. The stock was sold at an average price of $116.77, for a total transaction of $635,462.34. Following the transaction, the chief financial officer now owns 17,906 shares of the company’s stock, valued at approximately $2,090,883.62. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Lu M. Cordova sold 1,000 shares of the company’s stock in a transaction on Tuesday, August 28th. The shares were sold at an average price of $118.93, for a total value of $118,930.00. The disclosure for this sale can be found here. Insiders have sold a total of 7,171 shares of company stock worth $841,712 in the last ninety days. Insiders own 0.70% of the company’s stock.

Institutional investors and hedge funds have recently modified their holdings of the stock. Bank of America Corp DE lifted its holdings in Kansas City Southern by 32.3% during the 2nd quarter. Bank of America Corp DE now owns 1,186,541 shares of the transportation company’s stock worth $125,724,000 after purchasing an additional 289,457 shares in the last quarter. OppenheimerFunds Inc. lifted its holdings in Kansas City Southern by 2.5% during the 2nd quarter. OppenheimerFunds Inc. now owns 337,358 shares of the transportation company’s stock worth $35,746,000 after purchasing an additional 8,166 shares in the last quarter. Fort Washington Investment Advisors Inc. OH lifted its holdings in Kansas City Southern by 30.0% during the 2nd quarter. Fort Washington Investment Advisors Inc. OH now owns 8,765 shares of the transportation company’s stock worth $929,000 after purchasing an additional 2,025 shares in the last quarter. Tiverton Asset Management LLC lifted its holdings in Kansas City Southern by 256.0% during the 2nd quarter. Tiverton Asset Management LLC now owns 39,973 shares of the transportation company’s stock worth $4,236,000 after purchasing an additional 28,744 shares in the last quarter. Finally, Verition Fund Management LLC purchased a new stake in Kansas City Southern during the 2nd quarter worth about $1,307,000. 87.63% of the stock is currently owned by institutional investors and hedge funds.

Kansas City Southern Company Profile

Kansas City Southern, through its subsidiaries, provides domestic and international rail transportation services in North America. It serves a ten-state region in the midwest and southeast regions of the United States and has the shortest north/south rail route between Kansas City, Missouri, and ports along the Gulf of Mexico in Alabama, Louisiana, Mississippi, and Texas.

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The Fly

Analyst Recommendations for Kansas City Southern (NYSE:KSU)

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