UPDATE: Stifel Upgrades Norfolk Southern (NSC) to Buy

Stifel analyst Benjamin Nolan upgraded Norfolk Southern (NYSE: NSC) from Hold to Buy with a price target of $275.00 (from $289.00).

The analyst comments "We estimate Norfolk Southern's 2Q22 total carload volume contracted 3.4% y/y, and grew 5.8% vs 1Q22. We are forecasting 21.1% carload growth vs 2020, and a contraction of 9.8% compared with 2019, respectively. Year-over-year carload underperformance was driven by Metals and Construction (6.6%), Intermodal (4.5%), Coal (4.4%), and Agriculture, Forest, and Consumer Products (1.6%). Bright spots for the quarter were Automotive (+4.1%) and Chemicals (+3.7%). The 2Q velocity estimate is 17.5 mph, which is 12.7% slower compared to last year and 3.2% slower compared to last quarter. We are projecting 2Q22 revenues of $3.1 billion, resulting in 10% y/y revenue growth. We are estimating a 60.5% OR, which would be a 230 bps improvement sequentially, yet 20 bps worse y/y. Our 2Q22 EPS estimate is $3.41, which is $0.05 below the FactSet consensus of $3.46."

For an analyst ratings summary and ratings history on Norfolk Southern click here. For more ratings news on Norfolk Southern click here.

Shares of Norfolk Southern closed at $221.70 yesterday.

You May Also Be Interested In

• JD.com, Inc (JD) PT Lowered to $39 at Mizuho
• Braze Inc (BRZE) PT Raised to $35 at BTIG
• Madison Square Garden Entertainment (MSGE) PT Raised to $96 at BofA Securities