Norfolk Southern downgraded to Buy from Conviction Buy at Goldman Sachs

Goldman Sachs analyst Jordan Alliger removed Norfolk Southern from the firm’s Conviction List but keeps a Buy rating on the shares with a price target of $257, down from $266. While the $10B in lost market cap since the Norfolk Southern derailment on February 3 could already be reflected in the share price, the company faces uncertainty surrounding the "all-in" legal ramifications, potential fines, lawsuits, and capex pressures due to possible increased regulatory pressure to add safety equipment and technology, the analyst tells investors in a research note. As such, the firm believes it as prudent to take the shares off the Conviction List pending clarity on these factors.