As reported earlier, BMO Capital analyst Fadi Chamoun upgraded Kansas City Southern to Outperform from Market Perform and raised the price target to $125 from $120. Chamoun says the company is "the best-positioned growth story in the rail sector", citing demand from "multiple commodity segments supporting high-single-digit growth in revenue over the coming two years". The analyst also notes that the Kansas City Southern network is sufficiently resourced to support the growth, forecasting operating margin expansion boosting earnings by high-teen rate. Because of uncertainty surrounding the NAFTA talks, Chamoun also sees the current valuation on the company as attractive, with additional earnings upside coming from the "expected ramp-up in Canadian crude shipments and exports of U.S. refining products to Mexico".