UPDATE: Bank of America Upgrades Kansas City Southern On Long-Term Growth Story

In a report published Friday, Bank of America analyst Ken Hoexter upgraded the rating on

from Neutral to Buy, and reiterated the $113.00 price target. In the report, Bank of America noted, “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.” Kansas City Southern closed on Thursday at $98.94.