Friday, March 19, 2010

J.P. Morgan raises rail profit outlook

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Citing strengthening traffic, J.P. Morgan analysts in an investor alert Friday raised their 2010 and 2011 profit outlooks for five major U.S. and Canadian railroads—CSX Corp.; Norfolk Southern Corp., Union Pacific Corp., Canadian National Railway, and Canadian Pacific Railway Ltd.

The Morgan analysts said freight volume trends “appear likely to be better than our prior forecasts for the next several quarters. Our sense is that there is room for the railroads to sustain stronger price-to-earnings ratio valuation.”