UPDATE: Sterne Agee Raising Price Target on Norfolk Southern
Sterne Agee is out with a research report on Norfolk Southern (NYSE: NSC) and it is raising its price target to $82 from $80 after it reported earnings. It has a Buy rating on shares.
In a note to clients, Sterne Agee writes, "NSC reports another strong quarter, beating consensus by 9% on an operating basis. 3Q11 adjusted EPS of $1.54 was well ahead of our $1.40 estimate and consensus EPS of $1.41. Reported EPS of $1.59 included a $24 million ($0.05/share) gain on a land sale. A lower than expected share count added $0.03, which was partly offset by a higher tax rate ($0.01). “Apples to Apples” EPS of $1.52 was still above expectations. Revenues grew 18% YoY due to volume growth of 3% (vs. our 3% estimate) and one of the industry's best yield growth of 14% (vs. our 13% estimate)."
Shares of NSC are up $4.08 in pre-market trading to $73.85.
