UBS Downgrades Norfolk Southern to Neutral, Raises Target Price
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 06 2026
0mins
Should l Buy NSC?
Norfolk Southern Corp's stock rose by 3.00% and reached a 52-week high. UBS downgraded the company from Buy to Neutral but raised the target price to $342 from $320, indicating a cautious outlook despite the price increase. The decision to cut the buyback program may also reflect a strategic shift in capital allocation.
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Analyst Views on NSC
Wall Street analysts forecast NSC stock price to fall
13 Analyst Rating
5 Buy
8 Hold
0 Sell
Moderate Buy
Current: 316.760
Low
297.00
Averages
316.56
High
340.00
Current: 316.760
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.
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- Legal Obligation: Governor Hochul emphasized that the federal government has a legal obligation to fully fund the Gateway project, highlighting the importance of continuous funding support to prevent future disruptions for workers and commuters.
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- Stock Performance: Norfolk Southern Corporation (NYSE:NSC) shares have risen 23.6% over the past year and 10% year-to-date, indicating market confidence in its future growth despite industry challenges.
- Earnings Report: The latest earnings report revealed an adjusted profit of $3.22 per share, up from $3.04 a year ago, showcasing improved profitability; however, revenue fell 2% year-over-year to $3 billion, reflecting increased market competition.
- Analyst Rating Changes: Baird lowered its price target for Norfolk Southern from $293 to $288 while maintaining a Neutral rating, indicating a cautious outlook on its future performance, particularly in light of the merger plans.
- Merger Impact: Deutsche Bank downgraded the stock from Buy to Hold, citing potential fluctuations in the railroad industry due to the merger; however, Cramer argued that this downgrade was ill-advised, emphasizing the market's underlying confidence in the stock.
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UBS Downgrades Norfolk Southern Corp to Neutral from Buy; Increases Target Price to $342 from $320
Company Update: Norfolk Southern Corporation has made a decision to cut its buyback program.
Target Price Adjustment: The target price for the company's stock has been raised to $342 from a previous $320.
See More
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- Funding Release: The Trump administration released $98 million previously withheld for the Gateway Tunnel construction and an additional $30 million in reimbursements, significantly enhancing passenger rail capacity into Manhattan.
- Project Resumption: The funding freeze had triggered a work stoppage threatening nearly 1,000 jobs, but contractors are now instructed to prepare for construction resumption next week, ensuring the project stays on track.
- Legal Obligation: Governor Hochul emphasized that the federal government has a legal obligation to fully fund the Gateway project, highlighting the importance of continuous funding support to prevent future disruptions for workers and commuters.
- Infrastructure Significance: The Gateway project is one of the most critical infrastructure initiatives in the U.S., with the existing North River Tunnel carrying 200,000 passengers daily and in urgent need of repairs to meet growing transportation demands.
See More
Norfolk Southern Corporation Stock Update
- Stock Performance: Norfolk Southern Corporation (NYSE:NSC) shares have risen 23.6% over the past year and 10% year-to-date, indicating market confidence in its future growth despite industry challenges.
- Earnings Report: The latest earnings report revealed an adjusted profit of $3.22 per share, up from $3.04 a year ago, showcasing improved profitability; however, revenue fell 2% year-over-year to $3 billion, reflecting increased market competition.
- Analyst Rating Changes: Baird lowered its price target for Norfolk Southern from $293 to $288 while maintaining a Neutral rating, indicating a cautious outlook on its future performance, particularly in light of the merger plans.
- Merger Impact: Deutsche Bank downgraded the stock from Buy to Hold, citing potential fluctuations in the railroad industry due to the merger; however, Cramer argued that this downgrade was ill-advised, emphasizing the market's underlying confidence in the stock.
See More
Warner Bros. Hires Activist, Report Indicates: Implications for the Netflix Acquisition Struggle.
Activist Investor Involvement: An activist investor known for advocating sales of companies like Norfolk Southern and Sealed Air is now entering the Warner Bros. Discovery takeover discussions.
Focus on Takeover Battle: The investor's involvement indicates a strategic push in the ongoing takeover battle surrounding Warner Bros. Discovery.
See More
UBS Downgrades Norfolk Southern Corp to Neutral from Buy; Increases Target Price to $342 from $320
Company Update: Norfolk Southern Corporation has made a decision to cut its buyback program.
Target Price Adjustment: The target price for the company's stock has been raised to $342 from a previous $320.
See More
Wall Street's Latest Rating Changes Overview
- Amazon Downgrade: DA Davidson downgraded Amazon from Buy to Neutral, citing concerns that Amazon Web Services (AWS) is losing market share amid competition from Microsoft and Google, indicating a potential need for increased investment to regain its leading position in the cloud computing sector.
- Merit Medical Initiation: BTIG initiated coverage on Merit Medical with a Buy rating, highlighting its comprehensive product portfolio used across various interventional procedures, which underscores the company's high-quality positioning and growth potential in the medical device market.
- JBS Buy Rating: UBS initiated coverage on Brazilian meat company JBS with a Buy rating and a price target of $19.5 per share, implying a 23% upside, reflecting market confidence in its re-rating and potential stock price appreciation.
- Vistra Upgrade: Goldman Sachs upgraded Vistra from Neutral to Buy, projecting a potential EBITDA increase of 3-9% by 2028, indicating investor optimism regarding its future profitability and growth prospects in the nuclear energy sector.
See More
Norfolk Southern Drives 60 Projects for Economic Growth
- Economic Growth Initiatives: In 2025, Norfolk Southern Corporation advanced over 60 industrial development projects, representing $7.7 billion in investments that significantly boosted local economies and job growth.
- Rail Facility Expansion: These projects primarily focus on new or expanded rail-served facilities, indicating strategic decisions aimed at enhancing transportation capacity and service quality, thereby solidifying the company's market position.
- Strategic Network Advantage: The extensive reach of Norfolk Southern's strategic network enabled this economic activity, enhancing the company's influence across states and industries while promoting diversified regional economic development.
- Customer Investment Confidence: The trust and investment willingness from customers reflect Norfolk Southern's leadership in the industry, with future prospects for attracting more investments to support ongoing economic growth.
See More
