Bank of America Merrill Lynch Reiterates Buy on Kansas City Southern

Bank of America Merrill Lynch is out with its report today on Kansas Southern (NYSE: KSU), reiterating Buy.

In its report, Bank of America Merrill Lynch writes, "We reiterate our Buy opinion and $69 target which is based on a 20x multiple on our 2012 EPS estimate of $3.46. Our target multiple is just below the mid-point of its historical 13x-28x trading range. We believe this multiple is conservative given its strong earnings growth visibility and continued volume and pricing strength."

Shares of KSU closed Monday at $59.39.