Norfolk Southern named Catalyst Call Buy idea at Deutsche Bank » 07:4408/1008/10/20
Deutsche Bank analyst…
Deutsche Bank analyst Amit Mehrotra initiated a "Catalyst Call" Buy call on Norfolk Southern (NSC) as he sees the potential for a significant change in investor sentiment following the company's recent Q2 results. The analyst calls the potential for a change in sentiment "similar to the recent and rapid inflection with UPS, albeit likely not nearly at the same magnitude or scale."
J.B. Hunt initiated with an Outperform at Evercore ISI » 06:3808/1008/10/20
Evercore ISI analyst…
Evercore ISI analyst Jonathan Chappell initiated coverage of J.B. Hunt with an Outperform rating.
North American rail traffic dropped 10.2% in the week ended August 1 » 13:0708/0608/06/20
CNI, CP, CSX, KSU, NSC, UNP, GWR
The Association of…
The Association of American Railroads, AAR reported U.S. rail traffic for the week ending August 1, as well as volumes for July 2020. U.S. railroads originated 1,042,017 carloads in July 2020, down 17.6%, or 222,337 carloads, from July 2019. U.S. railroads also originated 1,295,960 containers and trailers in July 2020, down 1.4%, or 18,403 units, from the same month last year. Combined U.S. carload and intermodal originations in July 2020 were 2,337,977, down 9.3%, or 240,740 carloads and intermodal units from July 2019.For the week ending August 1, total U.S. weekly rail traffic was 487,968 carloads and intermodal units, down 9.9% compared with the same week last year. Total carloads for the week ending August 1 were 217,691 carloads, down 18.3% compared with the same week in 2019, while U.S. weekly intermodal volume was 270,277 containers and trailers, down 1.8% compared to 2019.North American rail volume for the week ending August 1, on 12 reporting U.S., Canadian and Mexican railroads totaled 308,202 carloads, down 16.4% compared with the same week last year, and 353,663 intermodal units, down 4% compared with last year. Total combined weekly rail traffic in North America was 661,865 carloads and intermodal units, down 10.2%. North American rail volume for the first 31 weeks of 2020 was 19,385,373 carloads and intermodal units, down 11.6 percent compared with 2019. Publicly traded companies in the space include CSX (CSX), Canadian National (CNI), Canadian Pacific (CP), Genesee & Wyoming (GWR), Kansas City Southern (KSU), Norfolk Southern (NSC) and Union Pacific (UNP).
|Over a week ago|
Landstar System upgraded to Neutral from Sell at Goldman Sachs » 04:5908/0408/04/20
LSTR, KNX, WERN, SNDR
Goldman Sachs analyst…
Goldman Sachs analyst Jordan Alliger upgraded Landstar System (LSTR) to Neutral from Sell with a price target of $120, up from $103. The analyst believes the truck cycle bottom is passed and has confidence that capacity constraints and cycle tightening are coming to fruition. However, until capacity utilization meaningfully increases, shippers may increasingly go direct to carriers instead of utilizing brokers, at least until the potential capacity issues become consistently tight in 2021, Alliger tells investors in a research note. As such, while more constructive on Landstar's prospects, the analyst continues to prefer the asset-based truckers Knight-Swift (KNX), Werner (WERN) and Schneider National (SNDR).
Union Pacific put volume heavy and directionally bearish » 14:5508/0308/03/20
Bearish flow noted in…
Bearish flow noted in Union Pacific with 1,615 puts trading, or 1.2x expected. Most active are 9/11 weekly 157.5 puts and 8/7 weekly 167.5 puts, with total volume in those strikes near 1,000 contracts. The Put/Call Ratio is 1.73, while ATM IV is up over 1 point on the day. Earnings are expected on October 22nd.
CSX call volume above normal and directionally bullish » 15:4507/3107/31/20
Bullish option flow…
Bullish option flow detected in CSX with 5,305 calls trading, 1.9x expected, and implied vol increasing over 1 point to 30.55%. 7/31 weekly 70 calls and Aug-20 75 calls are the most active options, with total volume in those strikes near 2,600 contracts. The Put/Call Ratio is 0.39. Earnings are expected on October 14th.
Report of PE interest in Kansas City Southern boosts railroad group » 15:3307/3107/31/20
KSU, CNI, CP, CSX, NSC, UNP, GWR, BX, C
Shares of Kansas City…
Shares of Kansas City Southern (KSU) jumped after the Wall Street Journal reported that Blackstone Group (BX) and Global Infrastructure Partners are considering a takeover bid for the railroad operator that could be worth more than $21B. The private equity firms are speaking to banks including Citigroup (C) about financing, Cara Lombardo and Miriam Gottfried report, citing people familiar with the matter. However, the roughly $15B equity check that could be required for a deal "would pose significant hurdles" for Blackstone and GIP, they add. The bid being discussed would likely include about $6.5B worth of debt financing, sources told the Journal. Shares of Kansas City Southern are up higher following the report as are some sector peers. Other publicly traded railroad companies include CSX (CSX), Canadian National (CNI), Canadian Pacific (CP), Genesee & Wyoming (GWR), Norfolk Southern (NSC) and Union Pacific (UNP). Reference Link
CSX put volume heavy and directionally bearish » 11:3507/3007/30/20
Bearish flow noted in CSX…
Bearish flow noted in CSX with 1,011 puts trading, or 1.3x expected. Most active are Jan-21 72.5 puts and Aug-20 75 calls, with total volume in those strikes near 420 contracts. The Put/Call Ratio is 1.91, while ATM IV is up over 2 points on the day. Earnings are expected on October 14th.
Fly Intel: Top five analyst downgrades » 10:1407/3007/30/20
AWI, CHEF, LB, CHRW, HXL
Catch up on today's…
Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Armstrong World (AWI) downgraded to Neutral from Outperform at Credit Suisse with analyst Adam Baumgarten citing his expectation of "much worse than expected" near term trends and rising risks in 2021, with the likelihood that ceilings would be included in commercial building upgrades looking "slim." 2. Chefs' Warehouse (CHEF) downgraded to Neutral from Overweight at Piper Sandler. 3. L Brands (LB) downgraded to Sell from Neutral at Citi with analyst Paul Lejuez saying after the company reported better than expected Q2 sales, the shares traded up 35% to $25.88. 4. C.H. Robinson (CHRW) was downgraded to Hold from Buy at Loop Capital and Stifel. 5. Hexcel (HXL) downgraded to Sell from Hold at Loop Capital with analyst Chris Kapsch saying the fundamentals for the company could still get worse before turning better, with any meaningful inflection possibly "taking years instead of quarters." This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
Schneider National sees FY20 adj. EPS $1.10-$1.25, consensus $1.05 » 09:1907/3007/30/20
"While uncertainty regarding the timing and pace of economic recovery remains, it is our current view that the most significant impact of the pandemic on our operations was borne in the second quarter," stated Rourke. "We are therefore restoring our full year 2020 guidance for adjusted diluted EPS at $1.10 - $1.25. This guidance assumes a continued and gradual improvement in overall operating conditions from increased demand and tighter capacity along with sequential improvement in Intermodal margins as balance is restored in the network over the second half of the year. In addition, our full year 2020 guidance for net capital expenditures remains at approximately $260 million."