Norfolk Southern (NYSE:NSC) Given New $379.00 Price Target at TD Cowen

Key Points

• TD Cowen raised Norfolk Southern’s price target to $379 from $376 and maintained a “buy” rating, implying approximately 13.4% upside from the prior close.
• Analyst sentiment remains mixed: seven analysts rate the stock a buy and 14 rate it a hold, producing an overall “Hold” consensus and an average price target of $347.12.
• Norfolk Southern exceeded quarterly expectations, reporting $3.62 in EPS and $3.53 billion in revenue, with revenue up 13.6% year over year; stronger freight volumes and intermodal demand supported growth.

Norfolk Southern (NYSE:NSC - Get Free Report) had its price objective hoisted by TD Cowen from $376.00 to $379.00 in a research note issued to investors on Friday, Benzinga reports. The firm presently has a "buy" rating on the railroad operator's stock. TD Cowen's price objective indicates a potential upside of 13.40% from the company's previous close.

Several other research analysts also recently commented on the company. UBS Group reissued a "neutral" rating and issued a $363.00 price objective on shares of Norfolk Southern in a research note on Friday, July 24th. Wells Fargo & Company upped their target price on shares of Norfolk Southern from $365.00 to $385.00 and gave the stock an "overweight" rating in a report on Friday, July 24th. Citigroup reiterated a "neutral" rating on shares of Norfolk Southern in a research report on Friday. JPMorgan Chase & Co. decreased their price target on shares of Norfolk Southern from $338.00 to $318.00 and set a "neutral" rating on the stock in a research note on Monday, October 5th. Finally, Benchmark restated a "hold" rating on shares of Norfolk Southern in a research report on Friday, July 24th. Seven analysts have rated the stock with a Buy rating and fourteen have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $347.12.

Norfolk Southern Stock Performance

NSC opened at $334.22 on Friday. The company has a quick ratio of 0.73, a current ratio of 0.83 and a debt-to-equity ratio of 0.98. The company has a market cap of $75.07 billion, a price-to-earnings ratio of 28.63, a PEG ratio of 4.89 and a beta of 1.29. Norfolk Southern has a 52-week low of $277.80 and a 52-week high of $358.60. The firm's fifty day simple moving average is $326.56 and its two-hundred day simple moving average is $320.58.

Norfolk Southern (NYSE:NSC - Get Free Report) last released its earnings results on Thursday, October 22nd. The railroad operator reported $3.62 EPS for the quarter, topping analysts' consensus estimates of $3.46 by $0.16. Norfolk Southern had a net margin of 21.02% and a return on equity of 18.21%. The business had revenue of $3.53 billion during the quarter, compared to analysts' expectations of $3.48 billion. During the same quarter in the previous year, the company earned $3.30 earnings per share. The company's quarterly revenue was up 13.6% on a year-over-year basis. Equities analysts anticipate that Norfolk Southern will post 12.81 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Norfolk Southern

Institutional investors have recently modified their holdings of the business. Gibbs Wealth Management boosted its position in shares of Norfolk Southern by 16.3% during the 3rd quarter. Gibbs Wealth Management now owns 2,077 shares of the railroad operator's stock valued at $642,000 after purchasing an additional 291 shares in the last quarter. Fifth Third Wealth Advisors LLC lifted its stake in Norfolk Southern by 4.8% during the third quarter. Fifth Third Wealth Advisors LLC now owns 4,329 shares of the railroad operator's stock valued at $1,338,000 after purchasing an additional 199 shares during the last quarter. Inspire Investing LLC boosted its holdings in Norfolk Southern by 10.9% during the third quarter. Inspire Investing LLC now owns 12,031 shares of the railroad operator's stock worth $3,717,000 after buying an additional 1,178 shares in the last quarter. River Street Advisors LLC boosted its holdings in Norfolk Southern by 2.6% during the third quarter. River Street Advisors LLC now owns 4,832 shares of the railroad operator's stock worth $1,493,000 after buying an additional 122 shares in the last quarter. Finally, Ledyard National Bank acquired a new position in Norfolk Southern in the third quarter worth approximately $207,000. Institutional investors and hedge funds own 75.10% of the company's stock.

Key Stories Impacting Norfolk Southern

Here are the key news stories impacting Norfolk Southern this week:

• Positive Sentiment: Q3 results exceeded expectations. Norfolk Southern reported record quarterly revenue of approximately $3.53 billion, up 13.6% year over year. Adjusted EPS was reported at $3.62 versus the $3.46 consensus estimate, while diluted EPS was $3.37. Revenue also surpassed forecasts of roughly $3.48 billion. Norfolk Southern tops profit estimates as freight demand stays strong
• Positive Sentiment: Volumes and pricing improved. Higher freight volumes, fuel surcharges and stronger intermodal demand drove the revenue growth. Railroads are also gaining relative to trucking as elevated fuel costs and tighter trucking capacity encourage customers to shift more freight to rail. NSC Q3 Earnings Beat Estimates on Record Revenues, Volume Growth
• Positive Sentiment: Shareholder return remains intact. NSC declared a quarterly dividend of $1.35 per share, payable November 20 to shareholders of record November 6, equivalent to $5.40 annually and an indicated yield of about 1.6%. Norfolk Southern Declares Quarterly Dividend
• Neutral Sentiment: Management plans substantial investment. Norfolk Southern outlined approximately $2.1 billion in 2026 capital expenditures, while its updated operating-expense outlook moved slightly above $9 billion. The spending may support network capacity and future growth but could limit near-term cash flow. Norfolk Southern outlines 2026 CapEx and OpEx outlook
• Negative Sentiment: Costs and valuation remain risks. Rising expenses, including labor and fuel-related costs, pressured margins despite the earnings beat. Stephens also reduced its NSC price target to $354 from $377, signaling more limited upside after the recent strength. Stephens Adjusts Price Target on Norfolk Southern

Norfolk Southern Company Profile

Norfolk Southern Corporation NYSE: NSC is a transportation company that operates one of the largest freight railroad networks in the eastern United States. Through its Norfolk Southern Railway subsidiary, the company provides rail transportation and related services across a broad territory spanning portions of the Midwest, South and East Coast, including access to major industrial centers, ports and distribution markets.

Norfolk Southern transports a diverse range of commodities, including intermodal freight, merchandise, automotive products, coal and other energy-related materials.

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