BMO Capital Markets Increases Norfolk Southern (NYSE:NSC) Price Target to $310.00

Key Points

• BMO Capital Markets raised its price target on Norfolk Southern from $305 to $310 and kept a market perform rating, a level that implies roughly a 2.7% downside from the prior close.
• Analyst views are mixed: the consensus is a Hold with an average target of $319.44, while some firms (including RBC and Barclays) have targets as high as $360 and others remain more cautious.
• Norfolk Southern traded near $318.70 (down ~0.3%); it posted an EPS beat ($2.65 vs. $2.49) but missed revenue estimates, and currently trades at about a 26.9 P/E with a market cap near $78 billion.

Norfolk Southern (NYSE:NSC - Get Free Report) had its price objective increased by research analysts at BMO Capital Markets from $305.00 to $310.00 in a report released on Monday,Benzinga reports. The firm presently has a "market perform" rating on the railroad operator's stock. BMO Capital Markets' target price indicates a potential downside of 2.73% from the company's previous close.

Several other research firms have also weighed in on NSC. Royal Bank Of Canada lifted their price objective on Norfolk Southern from $310.00 to $360.00 and gave the stock a "sector perform" rating in a research report on Friday. Wall Street Zen raised Norfolk Southern to a "sell" rating in a research note on Saturday, April 4th. Sanford C. Bernstein cut their price target on Norfolk Southern from $322.00 to $313.00 and set an "outperform" rating on the stock in a report on Tuesday, March 31st. Rothschild & Co Redburn lowered their price objective on shares of Norfolk Southern from $317.00 to $308.00 and set a "neutral" rating for the company in a research note on Wednesday, April 1st. Finally, Barclays reissued an "overweight" rating and set a $360.00 target price on shares of Norfolk Southern in a research note on Monday. Seven investment analysts have rated the stock with a Buy rating and sixteen have assigned a Hold rating to the company's stock. According to MarketBeat.com, Norfolk Southern currently has a consensus rating of "Hold" and an average target price of $319.44.

Norfolk Southern Trading Down 0.3%

NYSE:NSC traded down $1.01 on Monday, reaching $318.70. 79,588 shares of the stock traded hands, compared to its average volume of 1,281,991. The company has a current ratio of 0.91, a quick ratio of 0.81 and a debt-to-equity ratio of 1.04. Norfolk Southern has a 1-year low of $218.05 and a 1-year high of $323.37. The company's 50 day moving average is $299.61 and its 200-day moving average is $293.70. The firm has a market capitalization of $78.03 billion, a price-to-earnings ratio of 26.85, a price-to-earnings-growth ratio of 5.91 and a beta of 1.31.

Norfolk Southern (NYSE:NSC - Get Free Report) last posted its quarterly earnings data on Friday, April 24th. The railroad operator reported $2.65 EPS for the quarter, beating analysts' consensus estimates of $2.49 by $0.16. Norfolk Southern had a net margin of 21.91% and a return on equity of 18.30%. The company had revenue of $3 billion for the quarter, compared to analyst estimates of $3.13 billion. During the same period in the prior year, the firm posted $2.69 EPS. The company's quarterly revenue was up .2% on a year-over-year basis. Equities research analysts anticipate that Norfolk Southern will post 12.11 EPS for the current fiscal year.

Institutional Investors Weigh In On Norfolk Southern

A number of institutional investors and hedge funds have recently made changes to their positions in NSC. ORG Partners LLC raised its stake in shares of Norfolk Southern by 75.0% in the third quarter. ORG Partners LLC now owns 84 shares of the railroad operator's stock worth $25,000 after purchasing an additional 36 shares during the last quarter. JPL Wealth Management LLC bought a new position in Norfolk Southern during the 3rd quarter valued at $25,000. Westside Investment Management Inc. boosted its holdings in Norfolk Southern by 207.1% during the 3rd quarter. Westside Investment Management Inc. now owns 86 shares of the railroad operator's stock worth $26,000 after acquiring an additional 58 shares during the last quarter. GoalVest Advisory LLC grew its stake in shares of Norfolk Southern by 933.3% in the 4th quarter. GoalVest Advisory LLC now owns 93 shares of the railroad operator's stock worth $27,000 after acquiring an additional 84 shares in the last quarter. Finally, MMA Asset Management LLC purchased a new stake in shares of Norfolk Southern in the third quarter valued at about $28,000. Institutional investors and hedge funds own 75.10% of the company's stock.

Norfolk Southern Company Profile

Norfolk Southern Corporation is a major U.S. freight railroad company that provides rail transportation and related logistics services. As a Class I carrier, the company operates an extensive network across the eastern United States and offers scheduled freight service for a broad range of industries. Its core operations include long-haul and regional rail freight transportation, intermodal services that move containers and trailers between rail and other modes, and terminal and switching services that support efficient rail shipments for industrial and port customers.

The company transports a variety of commodities, serving sectors such as coal and energy, automotive and automotive parts, chemicals, agriculture, metals and construction materials, and consumer goods.

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