J.P. Morgan Sees Upside In Genesee & Wyoming (GWR)

J.P.Morgan Chase & Co. has a $51 price target on Genesee & Wyoming GWR, and a Neutral rating on the company. In a research note, J.P. Morgan writes, "GWR's 3Q EPS was essentially in line with Consensus after adjusting for the reversal of a restructuring charge. Several other items added noise to the quarter but underlying margin and EPS performance was solid. GWR appears likely to remain on a path of strong EPS growth in 2011 given a significant boost from its FreightLink acquisition which is expected to close in mid November. Valuation appears reasonably full to us but we also recognize that the boost to EPS from FreightLink may be even greater than expected." Shares of GWR gained 30 cents yesterday to close at $46.13, a gain of 0.65%.