RAIL - Kansas City Southern other railroads recover as an analysts see Biden sell off as buying opportunity

Tamas-V/iStock Editorial via Getty Images Kansas City Southern (KSU) rose 1.8% and Norfolk Southern (NSC) gained 4.2% after some analysts defended the railroad operators after a Biden executive order had investors concerned that the KSU/Canadian National (CNI) deal may be derailed and other railroads may be hurt by potential regulation. "Overall, the sell off from our perspective is a buying opportunity in the rail sector," BMO analyst Fadi Chamoun wrote in a note. BMO continues to favor Union Pacific (UNP)followed by CSX Corp (CSX). Chamoun writes that if the Biden order is modeled after the Canadian regulatory framework where "shipper friendly measures already exist," its doubtful that additional regulations will "alter the railroads financial framework." In addition, Norfolk Southern was raised to outperform at Evercore ISI after the recent sell off. NSC's underperformance misses a "big EPS growth opportunity" and now favorable relative valuation, Evercore analyst Jonathan Chappell wrote in note. Canadian National rose 1.7%,

For further details see:

Kansas City Southern, other railroads recover as an analysts see Biden sell off as buying opportunity