Market Overview

UPDATE: Jefferies Upgrades Norfolk Southern to Buy on Troughing EPS

Related NSC
Benzinga's Top Downgrades
It's Not Time To Buy Railroads: Union Pacific, Norfolk Southern Cut At Barclays
Strong gains for the railroad sector (Seeking Alpha)

Jefferies upgraded Norfolk Southern (NYSE: NSC) from Hold to Buy and raises the price target from $74.00 to $86.00.

Jefferies noted, "We are upgrading shares of NSC to Buy and raising our year-end price target to $86 (23% upside). We believe two factors have driven NSC's substantial underperformance over the last 12-18 months: (1) A marked decline in total coal volumes (down 9.2% since 2010 and down 19.9% from past-peak in 2008), and the consequent market fears over the earnings impact to NSC, and (2) NSC's operational disruptions on the 3Q report which led to a massive 24% earnings miss. The operational disruptions appeared to cycle through in last week's 4Q report. We see the coal factors easing over the next 12-18 months."

Norfolk Southern closed at $69.69 on Friday.

Latest Ratings for NSC

Oct 2015BarclaysDowngradesEqual-weightUnderweight
Oct 2015CitigroupMaintainsNeutral
Sep 2015Bank of AmericaUpgradesNeutralBuy

View More Analyst Ratings for NSC
View the Latest Analyst Ratings

Posted-In: JefferiesAnalyst Color Upgrades Pre-Market Outlook Analyst Ratings


Related Articles (NSC)

View Comments and Join the Discussion!

Get Benzinga's Newsletters