Bank of America Merrill Lynch Reiterates Buy on Kansas City Southern

Bank of America Merrill Lynch is out with its report today on Kansas Southern KSU, reiterating Buy. In its report, Bank of America Merrill Lynch writes, "We reiterate our Buy opinion and $69 target which is based on a 20x multiple on our 2012 EPS estimate of $3.46. Our target multiple is just below the mid-point of its historical 13x-28x trading range. We believe this multiple is conservative given its strong earnings growth visibility and continued volume and pricing strength." Shares of KSU closed Monday at $59.39.