Norfolk Southern (NYSE:NSC) Stock Price Expected to Rise, Citigroup Analyst Says

Key Points

• Citigroup raised its price target for Norfolk Southern stock from $288.00 to $305.00, indicating an 8.00% potential upside from its current price and maintaining a "neutral" rating.
• Other analysts, including TD Cowen and Barclays, have upgraded their ratings and target prices, reflecting a positive outlook on the stock trajectory with average target prices ranging from $285.15 to $323.00.
• Norfolk Southern reported a $3.29 EPS for the last quarter, surpassing expectations and achieving a revenue of $3.11 billion, indicative of strong financial performance amid varied analyst ratings.

Norfolk Southern (NYSE:NSC - Get Free Report) had its price objective hoisted by equities research analysts at Citigroup from $288.00 to $305.00 in a note issued to investors on Wednesday,Benzinga reports. The brokerage presently has a "neutral" rating on the railroad operator's stock. Citigroup's price target would suggest a potential upside of 10.74% from the company's previous close.

Several other equities research analysts have also recently weighed in on the company. Barclays upped their target price on Norfolk Southern from $290.00 to $300.00 and gave the stock an "overweight" rating in a research note on Wednesday. The Goldman Sachs Group reissued a "neutral" rating and issued a $278.00 price objective on shares of Norfolk Southern in a research note on Monday, June 2nd. Stifel Nicolaus reduced their price objective on shares of Norfolk Southern from $265.00 to $247.00 and set a "hold" rating on the stock in a research note on Monday, April 14th. Jefferies Financial Group reaffirmed a "hold" rating and set a $300.00 price target on shares of Norfolk Southern in a research report on Friday, July 25th. Finally, Baird R W upgraded shares of Norfolk Southern to a "hold" rating in a report on Tuesday, July 1st. Fourteen investment analysts have rated the stock with a hold rating and seven have given a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $285.15.

Norfolk Southern Stock Performance

Shares of NSC traded down $1.22 during mid-day trading on Wednesday, hitting $275.43. 873,022 shares of the company's stock were exchanged, compared to its average volume of 1,523,558. Norfolk Southern has a 52 week low of $201.63 and a 52 week high of $288.11. The stock's 50-day simple moving average is $259.28 and its 200-day simple moving average is $244.45. The firm has a market cap of $61.87 billion, a price-to-earnings ratio of 18.62, a price-to-earnings-growth ratio of 2.46 and a beta of 1.31. The company has a quick ratio of 0.70, a current ratio of 0.79 and a debt-to-equity ratio of 1.11.

Norfolk Southern (NYSE:NSC - Get Free Report) last announced its earnings results on Tuesday, July 29th. The railroad operator reported $3.29 EPS for the quarter, topping the consensus estimate of $3.24 by $0.05. The company had revenue of $3.11 billion for the quarter, compared to analysts' expectations of $3.10 billion. Norfolk Southern had a net margin of 27.51% and a return on equity of 19.35%. On average, equities research analysts expect that Norfolk Southern will post 13 EPS for the current year.

Institutional Investors Weigh In On Norfolk Southern

Several institutional investors and hedge funds have recently added to or reduced their stakes in NSC. Yukon Wealth Management Inc. increased its stake in shares of Norfolk Southern by 0.7% during the 2nd quarter. Yukon Wealth Management Inc. now owns 7,704 shares of the railroad operator's stock worth $1,972,000 after purchasing an additional 51 shares during the last quarter. Nisa Investment Advisors LLC increased its stake in shares of Norfolk Southern by 4.3% during the 2nd quarter. Nisa Investment Advisors LLC now owns 95,849 shares of the railroad operator's stock worth $24,534,000 after purchasing an additional 3,988 shares during the last quarter. Wealthfront Advisers LLC increased its stake in shares of Norfolk Southern by 57.7% during the 2nd quarter. Wealthfront Advisers LLC now owns 15,998 shares of the railroad operator's stock worth $4,095,000 after purchasing an additional 5,854 shares during the last quarter. Oppenheimer Asset Management Inc. purchased a new stake in shares of Norfolk Southern during the 2nd quarter worth approximately $2,394,000. Finally, Brighton Jones LLC increased its stake in shares of Norfolk Southern by 9.2% during the 2nd quarter. Brighton Jones LLC now owns 1,873 shares of the railroad operator's stock worth $480,000 after purchasing an additional 158 shares during the last quarter. Hedge funds and other institutional investors own 75.10% of the company's stock.

Norfolk Southern Company Profile

Norfolk Southern Corporation, together with its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods in the United States. The company transports agriculture, forest, and consumer products comprising soybeans, wheat, corn, fertilizers, livestock and poultry feed, food products, food oils, flour, sweeteners, ethanol, lumber and wood products, pulp board and paper products, wood fibers, wood pulp, beverages, and canned goods; chemicals consist of sulfur and related chemicals, petroleum products comprising crude oil, chlorine and bleaching compounds, plastics, rubber, industrial chemicals, chemical wastes, sand, and natural gas liquids; metals and construction materials, such as steel, aluminum products, machinery, scrap metals, cement, aggregates, minerals, clay, transportation equipment, and military-related products; and automotive, including finished motor vehicles and automotive parts, as well as coal.