On Oct 23, major Wall Street analysts update their ratings for $Norfolk Southern (NSC.US)$, with price targets ranging from $175 to $302.
Morgan Stanley analyst Ravi Shanker maintains with a sell rating, and maintains the target price at $175.
Goldman Sachs analyst Jordan Alliger maintains with a buy rating, and adjusts the target price from $292 to $301.
J.P. Morgan analyst Brian Ossenbeck maintains with a buy rating, and adjusts the target price from $283 to $288.
BofA Securities analyst Ken Hoexter maintains with a buy rating, and sets the target price at $291.
Citi analyst Ariel Rosa maintains with a buy rating, and adjusts the target price from $294 to $302.
Furthermore, according to the comprehensive report, the opinions of $Norfolk Southern (NSC.US)$'s main analysts recently are as follows:
The company delivered a comparatively positive earnings report. Despite several challenges expected to affect Q4 margins, there is a vision for significant enhancements in profitability by 2025, which correlates with a compelling equity value.
The company is positioned to enhance margins significantly compared to other Class 1 railways in the near to medium term as it starts from a lower base relative to its peers. The recent sequential margin improvements are indicative of a positive trend. Additionally, the recent increase in carloads and the expected narrowing of the operating ratio gap across its Eastern network geographies signify further operational advancements.
Norfolk Southern's Q3 adjusted EPS observed a 23% increase year over year, surpassing Street estimates. The company also reaffirmed its full year operating ratio goal of 66%, despite a decrease in its 2024 revenue growth forecast to 1% year over year from the previous 3%. It is anticipated that Norfolk Southern will boost earnings through productivity enhancements.
Following the release of quarterly results, there is a positive outlook on Norfolk Southern's operational performance. The company is making notable progress in areas where it had faced challenges, particularly in the implementation of precision scheduled railroading, which is contributing to better efficiency and improved margins. It is observed that achieving an operating ratio under 60 remains a realistic target for the company, assuming macroeconomic support. It's also indicated that the impressive operating ratio this quarter may have been influenced by a combination of volume growth and operational leverage effects.
The company's Q3 earnings surpassed expectations, showcasing its effective cost-saving measures and indicating that Norfolk Southern is experiencing a structural shift in cost management. Relative to its peers, with one having faced a tougher quarter, the company's Q3 performance is particularly commendable.
Here are the latest investment ratings and price targets for $Norfolk Southern (NSC.US)$ from 14 analysts:
Note:
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