Norfolk Southern faces challenges amid merger application rejection
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 20 Jan 26
Source: NASDAQ.COM
Norfolk Southern Corp's stock fell as it hit a 20-day low amid broader market declines, with the Nasdaq-100 down 1.52% and the S&P 500 down 1.36%.
The recent rejection of the merger application with Union Pacific by the Surface Transportation Board, supported by Canadian National Railway, has raised concerns about the future of the merger. The rejection was based on a lack of necessary information and transparency, which could hinder the anticipated benefits of the merger, including enhanced competition and reduced shipping costs.
This development may lead to increased scrutiny of Norfolk Southern's strategic plans and could impact investor confidence, especially as the railroad sector faces challenges in achieving operational efficiencies.
Analyst Views on NSC
Wall Street analysts forecast NSC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NSC is 316.56 USD with a low forecast of 297.00 USD and a high forecast of 340.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
5 Buy
8 Hold
0 Sell
Moderate Buy
Current: 290.160
Low
297.00
Averages
316.56
High
340.00
Current: 290.160
Low
297.00
Averages
316.56
High
340.00
About NSC
Norfolk Southern Corporation is a holding company engaged in the rail transportation business. The Company is engaged in the rail transportation of raw materials, intermediate products, and finished goods in the Southeast, East, and Midwest and, via interchange with rail carriers, to and from the rest of the United States. It also transports overseas freight through several Atlantic and Gulf Coast ports. It offers an intermodal network in the eastern half of the United States. Its railroad operations system reaches various manufacturing plants, electric generating facilities, mines, distribution centers and transload facilities. It serves various industries such as agriculture, forest and consumer products, automotive, chemicals, and metals and construction. Its coal franchise supports the electric generation market, directly serving over 18 coal-fired power plants, as well as the export, domestic metallurgical, and industrial markets, through direct rail and river, lake, and coastal.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
