In a report released today, Ken Hoexter from Bank of America Securities reiterated a Buy rating on Norfolk Southern, with a price target of $290.00.
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Ken Hoexter has given his Buy rating due to a combination of factors including Norfolk Southern’s operational improvements and strategic positioning. Despite a slowdown in intermodal growth and pressures from lower fuel prices and coal yield, Norfolk Southern has shown resilience in its operational metrics. The company has demonstrated significant carload gains, particularly in coal, which aligns with their targets and supports market share gains from trucking.
Additionally, Norfolk Southern’s operational efficiency, evidenced by a better-than-average operating ratio improvement, underlines its potential for profitability. The company’s service improvements and strategic focus on productivity gains are expected to drive earnings growth. As a result, Ken Hoexter has increased the price objective to $290, reflecting confidence in the company’s ability to scale earnings and capitalize on its recovery trajectory.
In another report released on June 20, RBC Capital also maintained a Buy rating on the stock with a $270.00 price target.