UPDATE: J.P. Morgan Downgrades RailAmerica

According to a research report published this morning, J.P. Morgan has downgraded RailAmerica

from Overweight to Neutral. In the report, J.P. Morgan said, "RA has been a very strong performer in 2012 up 61% (vs S&P 500 +4.9%) driven by solid EPS performance, news of acquisitions, and a large boost to EPS from a debt refinancing. On Wednesday RA stock was up 8.5% (vs S&P 500 +0.2%) due to an announcement that RA's board is considering strategic alternatives. While we expect RA to continue delivering solid performance, we believe that reward to risk is no longer favorable for the stock. We do not see likely strategic buyers for the company and given the strong move up in RA stock, we believe it makes sense to take profit on this name." J.P. Morgan maintains its $26 PT on RailAmerica, which is currently trading at $23.47.