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BMO Capital Markets Lowers Estimates on Kansas City Southern

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According to a research report this morning, BMO Capital Markets lowers estimates on Kansas City Southern (NYSE: KSU) from $0.88 to $0.81 for Q2/12 EPS.

BMO Capital Markets explained, “We note the following two factors should help mitigate the negative effect of weaker volumes: (1) the favourable impact on the tax rate due to a weaker peso; and (2) the decline in volume is concentrated in unit trains segments (coal &ag) where decremental margins can be contained with effective reduction of crews and associated equipments.”

Kansas City Southern closed Friday at $63.26 as BMO Capital Markets maintains its Outperform rating and $68 PT.

Posted-In: BMO Capital MarketsAnalyst Color Reiteration Analyst Ratings

 

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