UPDATE: UPDATE: UBS Downgrades Norfolk Southern (NSC) to Neutral (correction)
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(Updated - September 27, 2022 7:48 AM EDT)
UBS analyst Thomas Wadewitz downgraded Norfolk Southern (NYSE: NSC) from Buy to Neutral with a price target of $229.00 (from $282.00).
The analyst comments "With the macro backdrop deteriorating, Consensus 2023 EPS estimates appear too high for the U.S. rails and we expect downward revisions to industrial-related and intermodal volume assumptions in the near term. While a significant decline in freight demand would likely alleviate existing capacity constraints and lead to the improved service levels needed for the rails to regain share from truck, we believe it will be difficult for the U.S. rails to achieve the ~2.5% volume growth currently reflected in Consensus. We are cutting 2023E EPS by 10% for CSX and NSC which results in downgrades from Buy to Neutral for both names."
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