Kauffman downgraded the rating on the company from Buy to Hold, while lowering the price target from $105 to $95.
The analyst had earlier believed that Kansas City Southern’s “growth story can be even more dramatic as the unique franchise of the company will draw additional strength from Mexican near sourcing and potentially, energy reform, to reach mid-to-upper teens EPS growth rates through 2020.”
In fact, less than a month ago, Kansas City Southern was expected to be able to
However, given the change in the political landscape in the US, the scenario has become “cloudier”, specifically with regard to trade war risk.
The stock has consistently traded at premium of 20-30 percent. However, given Donald Trump's win, there is likely to be “increased potential for risk to free trade and NAFTA-related trade flows based on the President-elect's public election platform.”
|Nov 2016||Bank of America||Downgrades||Buy||Neutral|
|Nov 2016||Aegis Capital||Downgrades||Buy||Hold|
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