UPDATE: Bank of America Merrill Lynch Downgrades Norfolk Southernto Neutral
In a report published Wednesday, Bank of America Merrill Lynch downgraded its rating on Norfolk Southern Corp. (NYSE: NSC) from Buy to Neutral, and lowered its price objective from $79.00 to $75.00.
BofA Merrill Lynch noted, “NS is balancing volume growth at Auto and Intermodal with declines at Coal and Merchandise (Paper/Metals), post pricing above rail inflation, and focus on improving operational performance to hold its operating ratio sub-70% (it posted 67.5% in 2Q12). With fuel surcharge and volume declines outweighing pricing improvement, NS is focused on holding or improving returns on invested capital. The rails have historically traded between 12.5x-15.5x, and we target NS' shares to remain in that range.”
Norfolk Southern Corp. closed on Tuesday at $66.01.
Latest Ratings for NSC
|Aug 2016||Atlantic Equities||Initiates Coverage on||Neutral|
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