BMO Capital Markets Takes a Look at Railroads; Reiterates Norfolk Southern, CSX Outperform

BMO Capital Markets provided color on the rail industry and reiterated its Norfolk Southern NSC and CSX CSX Outperform ratings in a a research report published today. BMO Capital Markets has previously given Norfolk a $81 price target, and CSX has previously received a $29 price target. In the report, BMO Capital Markets states, "Exposure to the sector remains desirable, in our opinion, given robust sector fundamentals and undemanding valuation based on our 2012 EPS projections. We reiterate Outperform ratings on NSC (top pick) and CSX. We continue to recommend CP, although strong relative performance from CP may be unlikely until evidence that it has turned the corner from an operational standpoint becomes more visible." Shares of Norfolk closed today at $73.03, up 1.26% from Monday's market close. Shares of CSX closed today at $25.51, up 1.55% from Monday's market close.