Norfolk Southern price target raised to $276 from $259 at BofA

BofA analyst Ken Hoexter raised the firm’s price target on Norfolk Southern to $276 from $259 and keeps a Buy rating on the shares. Q3-to-date carload growth is up 7.5% year-year, ahead of the firm’s prior 6.2% target, which is now raised to 7.5%, the analyst tells investors. The higher volumes should work to offset lower yields/mix as BofA targets a Q3 operating ratio of 64.6%, which it notes would be a 130 basis points sequential improvement. The firm, which raised its Q3 and 2025 EPS estimates to $3.13 and $13.80, from $3.07 and $13.60, respectively, says Norfolk is set to accelerate earnings gains given its productivity improvements and focus on volume gains.