“Aside from the long-term structural growth in Mexico, the company has a few key growth pillars in 2H13-2014, including (1) 4 new auto plants that are scheduled to open in Mexico over the next 2 years (adding to its 9 in service), (2) moving Bakken and Canadian oil sands crude, (3) secular growth in Intermodal, (4) the addition of 2 major grain shippers in the back half of 2013, and (5) a potential debt upgrade. Headwinds include one of KCS’ coal customers shutting 2 boilers in December (although it is now comping against when the plant was shut between Feb-Jun 2012). Additionally, through 1H13 it will feel residual impacts from the drought on grain.,” the firm’s analyst wrote.
A number of other analysts have also recently weighed in on KSU. Analysts at BMO Capital Markets raised their price target on shares of Kansas City Southern from $75.00 to $80.00 in a research note to investors on Tuesday, February 5th. They now have an underperform rating on the stock. Separately, analysts at Barclays Capital raised their price target on shares of Kansas City Southern from $94.00 to $99.00 in a research note to investors on Wednesday, January 23rd. They now have an equal weight rating on the stock.
Eight analysts have rated the stock with a buy rating, one has assigned an overweight rating, twelve have assigned a hold rating, and three have issued a sell rating to the company’s stock. The company presently has a consensus rating of hold and a consensus target price of $96.29.
Shares of Kansas City Southern traded down 0.29% during mid-day trading on Monday, hitting $105.33. Kansas City Southern has a 52 week low of $61.36 and a 52 week high of $107.32. The stock’s 50-day moving average is currently $95.70. The company has a market cap of $11.603 billion and a P/E ratio of 30.83.
The company also recently announced a quarterly dividend, which is scheduled for Wednesday, April 3rd. Investors of record on Monday, March 11th will be paid a dividend of $0.22 per share. This represents a $0.86 annualized dividend and a dividend yield of 0.81%. The ex-dividend date is Thursday, March 7th. This is an increase from Kansas City Southern’s previous quarterly dividend of $0.20.
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