Wells Fargo Downgrades Norfolk Southern (NSC) to Market Perform as Volumes Weigh
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Price: $236.02 -3.68%
Rating Summary:
20 Buy, 18 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
20 Buy, 18 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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Following Norfolk Southern Corporation (NSC) earnings warning after the close of trading on Thursday, analysts at Wells Fargo downgraded their investment rating to Market Perform from Outperform because they no longer believe earnings growth will be resilient.
“We must conclude that mix and/or pricing changes are having a much more pronounced negative impact on earnings than we previously thought,” said analyst Anthony P. Gallo, adding that “outperformance will be challenged until there is clarity around mix and pricing or until carloads rebound.”
Longer term, Wells Fargo believes Norfolk Southern has an attractive position in large consumption markets, appealing exposure to certain commodity groups, and the ability to create organic growth through network expansion and industrial development. However, in the near-term, lagging coal volumes and more modest price gains may be a drag.
Wells Fargo cut their price target on NSC stock to $71.00 to $74.00 from $81.00 to $84.00.
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 $72.69 yesterday.
“We must conclude that mix and/or pricing changes are having a much more pronounced negative impact on earnings than we previously thought,” said analyst Anthony P. Gallo, adding that “outperformance will be challenged until there is clarity around mix and pricing or until carloads rebound.”
Longer term, Wells Fargo believes Norfolk Southern has an attractive position in large consumption markets, appealing exposure to certain commodity groups, and the ability to create organic growth through network expansion and industrial development. However, in the near-term, lagging coal volumes and more modest price gains may be a drag.
Wells Fargo cut their price target on NSC stock to $71.00 to $74.00 from $81.00 to $84.00.
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 $72.69 yesterday.
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