Norfolk Southern's Operational Turnaround To Drive Over 20% EPS Growth Through 2027, Analyst Says
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 23 2024
0mins
Source: Business Insider
- Analyst Upgrade: RBC Capital Markets analyst upgraded Norfolk Southern Corporation to Outperform from Sector Perform with a price target of $270.
- Bullish Stance: The upgrade is based on expected significant improvement in operating ratio and subsequent meaningful EPS growth.
- Investment Opportunity: Analyst sees the company as an attractive investment opportunity due to operational turnaround and outperforming EPS growth.
- Financial Projections: Spracklin estimates EPS CAGR of +20% 2024-27 and a 12.6ppt improvement in operating ratio by 2027.
- First Quarter Performance: Norfolk Southern reported a 4% Y/Y decline in first-quarter railway operating revenue, missing consensus estimates.
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: 289.080
Low
297.00
Averages
316.56
High
340.00
Current: 289.080
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.
