Market Overview

UPDATE: Stifel Downgrades Norfolk Southern

Share:
Related NSC
Norfolk Southern Misses Q2 Views
Earnings Scheduled For July 27, 2015
Norfolk Southern management confident results will improve (Seeking Alpha)

In a report published Thursday, Stifel analyst John Larkin downgrades Norfolk Southern (NYSE: NSC) to Hold from Buy.

According to the report, NSC's shares rebound nearly fully from the 2012 coal scare.

“The analysts admire NSC's long-term view toward value creation,” the report noted. “However, we believe most of the upside potential available in the company's common shares has been realized, as they have nearly fully recovered from their lows experienced in 2012 as investors fretted over the decline in the eastern railroad's utility coal business (natural gas for coal substitution was the main culprit here) and reduced pricing dynamics in the eastern U.S. export coal business (weaker global economic growth the main driver in this case).”

The report further asserted that the combination of inflation plus pricing, GDP+ volume growth, a partial offset of railroad inflation through productivity and efficiency enhancements and a steady share repurchase program will drive the 10 percent EPS growth embedded in estimates.

NSC closed Wednesday at $91.16.

Latest Ratings for NSC

DateFirmActionFromTo
Jul 2015JP MorganMaintainsUnderweight
Jul 2015BarclaysDowngradesOverweightEqualweight
Jul 2015RBC CapitalMaintainsSector Perform

View More Analyst Ratings for NSC
View the Latest Analyst Ratings

Posted-In: John Larkin StifelAnalyst Color Downgrades Analyst Ratings

 

Related Articles (NSC)

Get Benzinga's Newsletters