On Oct 24, major Wall Street analysts update their ratings for $Norfolk Southern (NSC.US)$, with price targets ranging from $175 to $291.
Morgan Stanley analyst Ravi Shanker maintains with a sell rating, and maintains the target price at $175.
BofA Securities analyst Ken Hoexter maintains with a buy rating, and maintains the target price at $291.
Barclays analyst Brandon Oglenski maintains with a buy rating, and adjusts the target price from $275 to $290.
Evercore analyst Jonathan Chappell maintains with a buy rating, and adjusts the target price from $276 to $274.
BMO Capital analyst Fadi Chamoun maintains with a hold rating, and maintains the target price at $275.
Furthermore, according to the comprehensive report, the opinions of $Norfolk Southern (NSC.US)$'s main analysts recently are as follows:
Norfolk Southern's recent earnings disclosure was comparatively positive. Despite various challenges anticipated to affect Q4 margins, there is a pathway identified for the company to significantly enhance its profitability by 2025, which is seen in relation to a compelling equity valuation.
The company is identified to have significant potential to enhance margins more so than other Class 1 rails in the near to medium term, considering it starts from a lower base compared to its competitors. The recorded 480 basis points of margin growth in the second quarter and an additional 170 basis points in the third quarter signify progress in the right direction. The company's recent increase in carloads, approximately 4% higher than the previous year, and the expected continuous narrowing of its operating ratio gap across Eastern network geographies supports this positive outlook.
Norfolk Southern's third-quarter adjusted earnings per share increased by 23% compared to the previous year, surpassing the consensus estimates. The company has also maintained its target for a 66% full-year operating ratio, despite a reduction in its 2024 revenue growth forecast to 1% year-over-year from an earlier projection of 3%. The expectation is that Norfolk Southern will enhance its earnings through productivity improvements.
Following the company's quarterly results, it's noted that the Chief Operating Officer is making significant progress in areas where the company has faced challenges in the past. The implementation of precision scheduled railroading and the pursuit of efficiency gains are contributing to margin enhancements. The company's confidence in achieving an operating ratio below 60 is supported by macroeconomic factors, even though the impressive operating ratio this quarter may have been influenced in part by volume and operating leverage advancements.
Norfolk Southern's recent quarterly earnings surpassed expectations, highlighting the company's effective cost-saving measures and indicating a significant structural cost turnaround. Comparatively, this quarter was particularly strong when measured against a competitor that experienced more challenges during the same period.
Here are the latest investment ratings and price targets for $Norfolk Southern (NSC.US)$ from 7 analysts:
Note:
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