Norfolk Southern price target raised to $272 from $267 at RBC Capital

RBC Capital raised the firm’s price target on Norfolk Southern (NSC) to $272 from $267 and keeps an Outperform rating on the shares as part of a broader research note previewing Q3 results for Class 1 Railroads. The firm is watching closely the macro backdrop given cautious commentary from FedEx (FDX) and CN (CNI) that the industrial outlook is worse vs. prior expectations, though it is also adjusting its models with rolled forward valuation year to 2026, the analyst tells investors in a research note. For Norfolk Southern, RBC expects the company’s new operations management to enact meaningful improvement, resulting in solid EPS growth out to 2027, the firm added, stating that this is not priced into the shares at current levels.