Analysts’ recommendations

Kansas City Southern (KSU) has received a consensus rating of ~2.16 and a consensus “buy” recommendation from the analysts polled by Reuters. Approximately 63% of the 19 analysts covering the stock provided a bullish recommendation, while 37% recommended a “hold.”

Kansas City Southern: Analysts’ Views before Its Q1 Results

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Analysts don’t expect much upside potential in the stock. The target price of $126.29 shows an increase of just 7.8% in a year.

Analysts have a similar view on most of Kansas City Southern’s Class I railroad peers. They have provided a “buy” recommendation to most railroad companies (IYT), but don’t see much upside potential in their stock prices in a year.

Approximately 54% of the 26 analysts have provided a “strong buy” or “buy” recommendation on Norfolk Southern (NSC). About 38% have a “hold” recommendation, while 8% have a “sell” recommendation. The target price of $197.10 shows a return of 2.3%.

For Union Pacific (UNP), about 61% of the 28 analysts have recommended a “strong buy” or “buy.” Approximately 36% of the analysts have recommended a “hold,” while 3% have recommended a “sell.” The target price of $177.79 shows a gain of 6.7% in the next year.

Approximately 46% of the 26 analysts tracking CSX (CSX) stock have recommended a “strong buy” or “buy.” About 50% of the analysts recommended a  “hold,” while 4% recommended a “sell.” The consensus target price of $77.71 shows an upside potential of 3.1% in the next year.

Stock price performance

Kansas City Southern stock has outperformed major US indexes’ returns. The stock has returned 22.7% YTD (year-to-date), while the Dow Jones, the NASDAQ, and the S&P 500 have risen 12.1%, 19.8%, and 15.2%, respectively. Union Pacific, Norfolk Southern, and CSX have registered YTD gains of 21%, 29.2%, and 21.4%, respectively.

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