TD Cowen downgrades Norfolk Southern on disappointing margin forecast

TD Cowen analyst Jason Seidl downgraded Norfolk Southern to Market Perform from Outperform with a price target of $236, up from $233. The company’s Q4 beat was more than offset by a 2024 outlook that came in well below forecast and a three-year margin forecast that was disappointing, the analyst tells investors in a research note. The firm says that while while the U.S. class I rails struggle to find the next lever for sales growth, Norfolk’s cost structure should continue to notably underperform its peer group for this year.