UPDATE: J.P. Morgan Raising Price Target On Kansas City Southern

J.P. Morgan Chase & Co. is out with a research report on Kansas City Southern KSU and is raising its price target to $67 from $62, and it has an Overweight rating after it reported earnings. In a note to clients, J.P. Morgan Chase & Co. writes, "We have a favorable volume and pricing outlook for KSU and we are raising our EPS estimates in 2011 and 2012. We expect KSU to benefit from a new customer that should support a meaningful boost to coal volumes in 2012. In our view, 7.5% volume growth and 4.2% yield growth should support further margin improvement for KSU in 2012. As a result, we are raising our Dec 2011 price target from $62 to $67, which is based on applying an 18x multiple to our revised 2012 EPS estimate of $3.70/ share." Shares of KSU gained $2.31 yesterday.