BofA analyst Ken Hoexter lowered the firm’s price target on Norfolk Southern to $269 from $272 and keeps a Buy rating on the shares, noting that an NSC train carrying 141 cars and three locomotives had 50 cars derail in East Palestine, Ohio on February 3, including 10 carrying hazardous materials. Norfolk may be liable for cleanup costs per the EPA and is facing class action lawsuits, noted the firm, which believes the company could experience about a $40M-$50M casualty charge, or an estimated 1% impact to 2023 EPS, based on prior incidents and the company’s insurance coverage. The firm added that rail shares have "historically not seen a material impact from accidents on a 3-month horizon."
Published first on TheFly
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