NEW YORK — Goldman Sachs on Wednesday said it initiated research coverage of the railroad industry and said that the industry looks poised to show modestly stronger earnings, reports a wire service.
Goldman started coverage on Burlington Northern Santa Fe Corp. (NYSE:BNI – News), Union Pacific Corp. (NYSE:UNP – News), Canadian National Railway Co. (NYSE:CNI – News; Toronto:CNR.TO – News), Norfolk Southern Corp. (NYSE:NSC – News) and CSX Corp. (NYSE:CSX – News)
Goldman analyst Jordan Alliger said he launched Burlington as a “recommended list” stock, Union Pacific and Canadian National as “market outperformers,” and CSX and Norfolk Southern with “market perform” ratings.
“We are initiating coverage of the railroad industry with a modestly overweight position, based on our view that favorable earnings momentum and reasonable valuation should produce low double-digit returns with below market risk,” Alliger said in a research note.