Norfolk Southern cut to Hold at Argus on earnings uncertainty

Argus analyst John Eade downgraded Norfolk Southern to Hold from Buy. The stock has underperformed the market over the past quarter with a 20% decline as the company has come under the "withering eye" of regulators and the U.S. Senate following the derailing of two of its trains in Ohio in February, the analyst tells investors in a research note. Norfolk Southern had been anticipating mid-single-digit growth for the year for Norfolk Southern, but the new costs associated with remediation programs will cut into profitability, Argus adds.