Barclays Maintains an 'Overweight' on Norfolk Southern (NSC); Strong Performance Supports Relative Equity Gains in Advance of Qtr

Barclays maintains an 'Overweight' on Norfolk Southern (NYSE: NSC) price target of $84.00.

Barclays analysts says, "After strong relative performance, Norfolk Southern needed a solid quarter and results did not disappoint: Pricing momentum continues, operations are improving, cost leverage is materializing, and headcount guidance for 2012 suggests further cost leverage. In fairness, NSC did perform very well heading into this release and, but for CN, is the best performing Class I rail thus far in 2011. However, measured from January of 2010 instead of 2011, the picture is quite different with NSC performing much more in line. This release increases our comfort level and estimates; NSC remains our top pick."

"Raising 4Q and 2012 slightly: On the heels of these results, we are raising our 4Q and 2012 estimates. 4Q goes from $1.35 to $1.36 and 2012 from $5.85 to $6.00. We suspect consensus will rise following these results."

For more ratings news on Norfolk Southern click here and for the rating history of Norfolk Southern click here.

Shares of Norfolk Southern closed at $69.77 yesterday.

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