UPDATE: BMO Capital Markets Downgrade Kansas City Southern to Underperform on Valuation

BMO Capital Markets reduced its rating on Kansas City Southern

from Market Perform to Underperform with a reiterated $70 price target. BMO Capital Markets commented, "We are lowering our rating to Underperform from Market Perform on the basis of the following: (1) valuation appears to be at its peak versus the 5-year historical average and relative to the overall market and offers little room for upside, and (2) earnings estimates for Q4/12 and 2013 appear somewhat optimistic. We expect modest downward earnings revisions given weaker agriculture and coal segments and a generally slowing economy." Kansas City Southern closed at $83.95 on Friday.