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Fly News Breaks for October 9, 2018
KSU
Oct 9, 2018 | 06:32 EDT
Loop Capital analyst Rick Paterson lowered his price target on Kansas City Southern to $136, citing the latest reports of congestion in south Texas from the overloaded Monterrey yard that is also expected to spread into northern Mexico. The analyst expects the development to weigh on the company's margins and also likely to put its volume guidance growth of 3%-4% this year "out of reach". Paterson keeps his Buy rating on Kansas City Southern longer term, noting that the market confidence of the company reaching that guidance was already low while adding that growth should accelerate in 2019 with Sasol opening in December and boosting the shipping needs for its plastics joint venture.