Monday, March 30, 2009

Analyst sees second-half switch for rails

Written by 
  • Print
  • Email

Goldman Sachs analyst David Feinberg advised clients in aresearch note that he expects railroads to experience a turnaroundbeginning in this year's secondhalf, though he now believes their loss of volume during the year will be as high as 13.3% vs. his earlier forecast of 10.8%. He also expects the industry to maintain prices 4% higher than lastyear.

Among specific carriers, Feinberg upgraded  BNSF to "buy" and droppedUnion Pacific's rating from "buy" to"neutral." Taking note of BNSFs "superior" intermodal franchisee, he said BN has recently been takingvolume away from rival UP.  

Get the latest rail news

Rail news and analysis from Railway Age, IRJ and RT&S by email