UPDATE: Jefferies Upgrades Norfolk Southern to Buy on Troughing EPS
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 2016||Avondale Partners||Downgrades||Market Outperform||Underperform|
|Oct 2016||Bank of America||Upgrades||Neutral||Buy|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.