) to underperform from neutral.
Analyst Jon Langenfeld said the company's share price appreciation (up nearly 20% over past month) was the primary driver of the downgrade. He noted that while modest third quarter earnings per share upside is likely, it appears to be more than reflected in the stock. He said that in future quarters, investors will increasingly focus on the company's intermodal volume growth, which is disappointing thus far in 2005. While September activity improved some, he says rail service stabilized, while the 2005 peak season started later and is likely to peak at lower levels. He believes fair value of stock is near $30 assuming modest upside to his estimates.