Bank of America Merrill Lynch issues a sweeping downgrade across the railroad sector on valuation concerns.
Norfolk Southern (NSC -2%) is moved to Neutral from Buy and assigned a lowered price target of $182.
Canadian National Railway (CNI -1.1%) is also dropped to Neutral from Buy and lands a price target of $93.
Union Pacific (UNP -1.4%) is taken to Neutral as well and tagged with a price target of $164 vs. $177 prior PT.
Forward price-to-earnings ratios: GWR 18.5, CNI 17.9, UNP 16.9, NSC 16.7, KSU 14.9.
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