Citigroup Forecasts Strong Price Appreciation for Norfolk Southern (NYSE:NSC) Stock

Key Points

• Citigroup raised its price target on Norfolk Southern to $376 from $351, keeping a neutral rating. The new target suggests about 6.7% upside from the prior close.
• Several other analysts also lifted targets on the stock, including TD Cowen and Wells Fargo, though the broader consensus remains Hold with an average target price of $344.35.
• Norfolk Southern also posted better-than-expected quarterly results, with EPS of $3.52 beating estimates and revenue rising 12.5% year over year, helping push the stock higher in trading.

Norfolk Southern (NYSE:NSC - Get Free Report) had its price objective raised by equities researchers at Citigroup from $351.00 to $376.00 in a research note issued on Friday,Benzinga reports. The firm presently has a "neutral" rating on the railroad operator's stock. Citigroup's target price indicates a potential upside of 6.70% from the company's previous close.

A number of other brokerages also recently commented on NSC. Susquehanna upped their target price on Norfolk Southern from $337.00 to $360.00 and gave the company a "neutral" rating in a report on Tuesday, July 14th. Royal Bank Of Canada lifted their price target on shares of Norfolk Southern from $320.00 to $360.00 and gave the company a "sector perform" rating in a report on Friday. TD Cowen boosted their price objective on shares of Norfolk Southern from $337.00 to $376.00 and gave the company a "buy" rating in a research report on Friday. Wells Fargo & Company raised their target price on shares of Norfolk Southern from $365.00 to $385.00 and gave the stock an "overweight" rating in a research report on Friday. Finally, JPMorgan Chase & Co. lifted their target price on shares of Norfolk Southern from $316.00 to $338.00 and gave the company a "neutral" rating in a research note on Friday. Six analysts have rated the stock with a Buy rating and seventeen have assigned a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $344.35.

Norfolk Southern Trading Up 1.1%

NYSE:NSC traded up $3.83 during mid-day trading on Friday, reaching $352.38. 542,875 shares of the company's stock traded hands, compared to its average volume of 1,225,710. Norfolk Southern has a 12-month low of $268.23 and a 12-month high of $358.60. The firm has a market capitalization of $79.14 billion, a price-to-earnings ratio of 29.75, a PEG ratio of 6.05 and a beta of 1.27. The company has a debt-to-equity ratio of 1.04, a current ratio of 0.91 and a quick ratio of 0.81. The company has a 50 day moving average price of $316.67 and a 200-day moving average price of $305.84.

Norfolk Southern (NYSE:NSC - Get Free Report) last released its quarterly earnings results on Thursday, July 23rd. The railroad operator reported $3.52 EPS for the quarter, beating analysts' consensus estimates of $3.32 by $0.20. Norfolk Southern had a return on equity of 18.30% and a net margin of 21.91%.The business had revenue of $3.46 billion during the quarter, compared to analyst estimates of $3.38 billion. During the same quarter in the prior year, the company posted $3.29 EPS. Norfolk Southern's quarterly revenue was up 12.5% compared to the same quarter last year. On average, sell-side analysts predict that Norfolk Southern will post 12.24 earnings per share for the current year.

Hedge Funds Weigh In On Norfolk Southern

A number of institutional investors have recently added to or reduced their stakes in the company. Louisiana State Employees Retirement System bought a new position in Norfolk Southern during the 1st quarter valued at approximately $3,272,000. O Shaughnessy Asset Management LLC boosted its holdings in Norfolk Southern by 9.8% in the fourth quarter. O Shaughnessy Asset Management LLC now owns 43,408 shares of the railroad operator's stock worth $12,533,000 after acquiring an additional 3,887 shares in the last quarter. GABELLI & Co INVESTMENT ADVISERS INC. grew its stake in shares of Norfolk Southern by 49.3% in the fourth quarter. GABELLI & Co INVESTMENT ADVISERS INC. now owns 50,620 shares of the railroad operator's stock worth $14,615,000 after acquiring an additional 16,720 shares during the last quarter. Gabelli Funds LLC grew its stake in shares of Norfolk Southern by 54.4% in the fourth quarter. Gabelli Funds LLC now owns 51,112 shares of the railroad operator's stock worth $14,757,000 after acquiring an additional 18,012 shares during the last quarter. Finally, Robeco Institutional Asset Management B.V. increased its holdings in shares of Norfolk Southern by 8.6% during the fourth quarter. Robeco Institutional Asset Management B.V. now owns 138,194 shares of the railroad operator's stock valued at $39,899,000 after acquiring an additional 10,910 shares in the last quarter. Institutional investors 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: Norfolk Southern reported Q2 results above expectations, with EPS of $3.52 topping estimates and revenue reaching a record level, helped by stronger freight demand, intermodal growth, and higher fuel surcharges. Reuters article
• Positive Sentiment: Wells Fargo raised its price target on Norfolk Southern to $385 from $365 and reiterated an overweight rating, signaling further upside potential from current levels. Benzinga coverage
• Positive Sentiment: Several post-earnings summaries highlighted record revenue and improved demand trends, reinforcing investor confidence in the railroad’s operating momentum. WSJ article
• Neutral Sentiment: Some coverage noted that profitability was pressured by higher fuel costs and margin compression, offsetting part of the benefit from stronger revenue growth. Seeking Alpha article
• Neutral Sentiment: Investors are also watching the ongoing Union Pacific-Norfolk Southern merger discussion, including Canadian National’s decision to drop opposition in exchange for expanded access, though this is not an immediate earnings driver. WSJ merger article

About Norfolk Southern

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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