JPMorgan Chase & Co. Forecasts Strong Price Appreciation for Norfolk Southern (NYSE:NSC) Stock

Norfolk Southern (NYSE:NSC) had its price objective hoisted by JPMorgan Chase & Co. from $316.00 to $338.00 in a note issued to investors on Friday,Benzinga reports. The brokerage currently has a “neutral” rating on the railroad operator’s stock. JPMorgan Chase & Co.‘s price objective suggests a potential downside of 3.80% from the stock’s current price.

NSC has been the subject of a number of other reports. Wall Street Zen raised shares of Norfolk Southern from a “sell” rating to a “hold” rating in a research note on Saturday, May 2nd. Jefferies Financial Group cut their price objective on Norfolk Southern from $350.00 to $310.00 and set a “hold” rating on the stock in a research report on Monday, April 6th. Barclays increased their target price on Norfolk Southern from $360.00 to $400.00 and gave the stock an “overweight” rating in a research report on Friday. UBS Group restated a “neutral” rating and issued a $363.00 target price on shares of Norfolk Southern in a research note on Friday. Finally, Sanford C. Bernstein dropped their price target on Norfolk Southern from $322.00 to $313.00 and set an “outperform” rating on the stock in a research report on Tuesday, March 31st. Six research analysts have rated the stock with a Buy rating and seventeen have issued a Hold rating to the stock. According to data from MarketBeat.com, Norfolk Southern currently has an average rating of “Hold” and an average target price of $342.88.

Norfolk Southern Trading Up 0.8%

NYSE:NSC traded up $2.79 during trading hours on Friday, hitting $351.34. The company had a trading volume of 432,194 shares, compared to its average volume of 1,225,234. The company has a market capitalization of $78.91 billion, a PE ratio of 29.60, a price-to-earnings-growth ratio of 6.05 and a beta of 1.27. The stock has a 50-day moving average price of $316.67 and a 200 day moving average price of $305.84. Norfolk Southern has a 52 week low of $268.23 and a 52 week high of $358.60. The company has a debt-to-equity ratio of 1.04, a current ratio of 0.91 and a quick ratio of 0.81.

Norfolk Southern (NYSE:NSC) last issued its quarterly earnings data on Thursday, July 23rd. The railroad operator reported $3.52 EPS for the quarter, topping the consensus estimate of $3.32 by $0.20. Norfolk Southern had a net margin of 21.91% and a return on equity of 18.30%. The business had revenue of $3.46 billion during the quarter, compared to analyst estimates of $3.38 billion. During the same period in the prior year, the business earned $3.29 EPS. The company’s revenue for the quarter was up 12.5% on a year-over-year basis. On average, equities research analysts predict that Norfolk Southern will post 12.24 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in NSC. Louisiana State Employees Retirement System bought a new stake in shares of Norfolk Southern in the 1st quarter worth $3,272,000. O Shaughnessy Asset Management LLC raised its holdings in shares of Norfolk Southern by 9.8% during the fourth quarter. O Shaughnessy Asset Management LLC now owns 43,408 shares of the railroad operator’s stock valued at $12,533,000 after purchasing an additional 3,887 shares during the last quarter. GABELLI & Co INVESTMENT ADVISERS INC. lifted its position in Norfolk Southern by 49.3% during the fourth quarter. GABELLI & Co INVESTMENT ADVISERS INC. now owns 50,620 shares of the railroad operator’s stock valued at $14,615,000 after purchasing an additional 16,720 shares during the period. Gabelli Funds LLC boosted its holdings in Norfolk Southern by 54.4% in the fourth quarter. Gabelli Funds LLC now owns 51,112 shares of the railroad operator’s stock worth $14,757,000 after purchasing an additional 18,012 shares during the last quarter. Finally, Robeco Institutional Asset Management B.V. grew its position in Norfolk Southern by 8.6% in the 4th quarter. Robeco Institutional Asset Management B.V. now owns 138,194 shares of the railroad operator’s stock worth $39,899,000 after purchasing an additional 10,910 shares during the period. Institutional investors own 75.10% of the company’s stock.

Key Stories Impacting Norfolk Southern

Here are the key news stories impacting Norfolk Southern this week:

• Positive Sentiment: Norfolk Southern reported Q2 results above expectations, with EPS of $3.52 topping estimates and revenue reaching a record level, helped by stronger freight demand, intermodal growth, and higher fuel surcharges. Reuters article
• Positive Sentiment: Wells Fargo raised its price target on Norfolk Southern to $385 from $365 and reiterated an overweight rating, signaling further upside potential from current levels. Benzinga coverage
• Positive Sentiment: Several post-earnings summaries highlighted record revenue and improved demand trends, reinforcing investor confidence in the railroad’s operating momentum. WSJ article
• Neutral Sentiment: Some coverage noted that profitability was pressured by higher fuel costs and margin compression, offsetting part of the benefit from stronger revenue growth. Seeking Alpha article
• Neutral Sentiment: Investors are also watching the ongoing Union Pacific-Norfolk Southern merger discussion, including Canadian National’s decision to drop opposition in exchange for expanded access, though this is not an immediate earnings driver. WSJ merger article

Norfolk Southern Company Profile

Norfolk Southern Corporation is a major U.S. freight railroad company that provides rail transportation and related logistics services. As a Class I carrier, the company operates an extensive network across the eastern United States and offers scheduled freight service for a broad range of industries. Its core operations include long-haul and regional rail freight transportation, intermodal services that move containers and trailers between rail and other modes, and terminal and switching services that support efficient rail shipments for industrial and port customers.

The company transports a variety of commodities, serving sectors such as coal and energy, automotive and automotive parts, chemicals, agriculture, metals and construction materials, and consumer goods.