Analyst Jason Seidl of TD Cowen reiterated a Buy rating on Norfolk Southern, reducing the price target to $314.00.
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Jason Seidl has given his Buy rating due to a combination of factors influencing Norfolk Southern’s performance. Despite the company’s third-quarter results missing consensus expectations, they were roughly in line with Seidl’s adjusted forecasts. The company is experiencing top-line pressure due to softer demand and competition from rival rail services, but pricing remains stable, and cost-cutting measures are driving efficiencies.
Seidl notes that while these efficiencies may not be enough to improve margins in the fourth quarter, Norfolk Southern is expected to benefit from network integration with UNP in the coming years, assuming regulatory approval. Additionally, productivity measures related to labor and fuel are anticipated to yield positive results even in a challenging demand environment. With a price target set at $314, Seidl reiterates a Buy rating, reflecting confidence in the company’s strategic initiatives and long-term growth potential.
According to TipRanks, Seidl is a 5-star analyst with an average return of 21.0% and a 64.67% success rate. Seidl covers the Industrials sector, focusing on stocks such as CSX, Norfolk Southern, and Union Pacific.
In another report released today, Barclays also maintained a Buy rating on the stock with a $320.00 price target.