Dahlman Rose Says Rails On Track (CSX, UNP, NSC)

Dahlman Rose & Co. discusses the railroad sector, including Union Pacific Corporation UNP, Norfolk Southern Corp. NSC, and CSX CSX. It has Buy ratings on all three companies, with price targets of $92, $68, and $67 respectively. In the research note, Dahlman Rose writes, "Week 38 volumes grew 13.6%, vs 12.6% and 12.0% in the prior two weeks. This is better than the 12.9% QTD growth rate but well below the 18% rate seen in 2Q10. While y/y growth should continue to slow in the remainder of the year due to tough comparisons, this is largely an optical illusion as volume levels remain very strong. Indeed, the 810,391 carloads transported in week 38 are only 9% off the all-time high level seen in week 39 2007."