MOST NOTEWORTHY: Select railroads were popular initiations today:
- Morgan Keegan started shares of Burlington Northern Santa Fe Corp (NYSE: BNI) with an Outperform rating and believes the stock should trade at a premium to Class 1 railroad peers, as the company consistently ranks above its peers in terms of operating ratio and return on invested capital.
- Morgan Keegan believes Kansas City Southern (NYSE: KSU) de Mexico provides KSU a tremendous growth opportunity, starting shares with an Outperform rating.
- Morgan Keegan also believes Norfolk Southern Corp (NYSE: NSC) is undervalued, despite having some of the best operating metrics in the industry, initiating shares with an Outperform rating.
- Union Pacific Corp (NYSE: UNP) was started with an Outperform rating as Morgan Keegan believes earnings estimates and management guidance may be conservative.
- Finally, CSX Corp (NYSE: CSX) was initiated with a Market Perform rating at Morgan Keegan as the firm believes there is more risk to the current share price than the potential upside...
OTHER INITIATIONS:
Analyst summaries provided by TheFlyOnTheWall.com (subscription required).
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