Barclays Maintains an 'Overweight' on Norfolk Southern (NSC); 2012 Has Even Greater Potential
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Price: $350.72 +1.18%
Rating Summary:
12 Buy, 26 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
12 Buy, 26 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Overweight' on Norfolk Southern (NYSE: NSC) price target of $86.00.
Barclays analyst says, "Fundamentally and in the stock market, NSC's 2011 performance looks impressive, but even a cursory look at the longer history makes one thing clear...we believe the company can do even better in 2012. Whether it's share price, realized pricing, or cost leverage, NSC is showing strong in 2011. That fact is discouraging many who think this may be as good as it gets. However, a look at the longer history (only a few years) casts all those variables in a different light. The story for the year began with pricing, which has been sustained, and solid cost leverage began to surface in the most recent quarter. While surprising this year, neither is all that surprising in longer-term context. We expect the momentum to continue heading into 2012."
"Easy to underestimate for 2012 - In combination, we believe these factors make NSC easy to underestimate heading into 2012. We take the opposite view. We expect the momentum and earnings surprises to continue. We raise our estimate to $6.15 from $6.00."
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 $74.98 yesterday.
Barclays analyst says, "Fundamentally and in the stock market, NSC's 2011 performance looks impressive, but even a cursory look at the longer history makes one thing clear...we believe the company can do even better in 2012. Whether it's share price, realized pricing, or cost leverage, NSC is showing strong in 2011. That fact is discouraging many who think this may be as good as it gets. However, a look at the longer history (only a few years) casts all those variables in a different light. The story for the year began with pricing, which has been sustained, and solid cost leverage began to surface in the most recent quarter. While surprising this year, neither is all that surprising in longer-term context. We expect the momentum to continue heading into 2012."
"Easy to underestimate for 2012 - In combination, we believe these factors make NSC easy to underestimate heading into 2012. We take the opposite view. We expect the momentum and earnings surprises to continue. We raise our estimate to $6.15 from $6.00."
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 $74.98 yesterday.
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