Market Overview

7 Railroad Stocks With Revised Estimates At Bank of America

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In a note released Wednesday, Bank of America analyst Ken Hoexter raised price objectives across the board on the railroad sector and provided his revised EPS estimates.

Hoexter noted that the group is trading at an average of 15.8x his 2015 EPS estimates, which is at the high end of its historical average. On this topic, Hoexter wrote, "we believe the rails should trade above their historical trading ranges given sustainable double-digit earnings growth, improving return on invested capital levels, and the ability to price above inflation."

Despite his optimism, Hoexter warned that the stocks might "take a slight breather" in the summer months.

Estimate Revisions

  • Canadian National Railway Company (NYSE: CNI) - Neutral rated, price objective raised from $62 to $67; Q214 EPS raised from $0.92 to $1.02, FY14 from $3.47 to $3.60, FY15 from $3.88 to $4.00.
  • Canadian Pacific Railway Limited (NYSE: CP) - Buy rated, price objective raised from $180 to $202; Q214 from $2.10 to $2.04, FY14 unchanged at $8.50, FY15 from $10.50 to $10.65.
  • CSX Corp. (NYSE: CSX) - Buy rated, price objective raised from $33 to $36; Q214 from $0.51 to $0.53, FY14 from $1.85 to $1.86, FY15 from $2.13 to $2.15.
  • Norfolk Southern Corporation (NYSE: NSC) - Buy rated, price objective raised from $113 to $118; Q214 from $1.69 to $1.74, FY14 from $6.30 to $6.40.
  • Union Pacific Corporation (NYSE: UNP) - Buy rated, price objective raised from $102.50 to $113; Q214 from $1.38 to $1.41, FY14 from $5.45 to $5.50, FY15 from $6.13 to $6.25.
  • Kansas City Southern (NYSE: KSU) - Buy rated, price objective raised from $113 to $123; Q214 from $1.21 to $1.18, FY14 unchanged at $4.70, FY15 from $5.50 to $5.45.
  • Genesee & Wyoming (NYSE: GWR) - Buy rated, Q214 unchanged at $1.11, FY14 unchanged at $4.25, FY15 unchanged at $5.30

 

Latest Ratings for CNI

DateFirmActionFromTo
Apr 2019MaintainsHoldHold
Apr 2019MaintainsOverweightOverweight
Apr 2019DowngradesOutperformSector Perform

View More Analyst Ratings for CNI
View the Latest Analyst Ratings

Posted-In: Bank of America Ken HoexterAnalyst Color Price Target Analyst Ratings

 

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