Union Pacific and Norfolk Southern's Merger Application Faces Scrutiny from Competitors
Written by Emily J. Thompson, Senior Investment Analyst
Source: Yahoo Finance
- Application Deficiencies: The nearly 7,000-page merger application submitted by Union Pacific and Norfolk Southern is criticized by competitors for lacking necessary information, which could lead to the regulatory board rejecting the $85 billion deal.
- Data Transparency Issues: Competitors like CPKC highlight the absence of critical truck flow data in the application, undermining the feasibility analysis of diverting 2 million truckloads annually, which may result in decreased market competitiveness post-merger.
- Insufficient Industry Reaction Analysis: Companies such as BNSF and CN criticize the merger application for failing to adequately analyze potential changes in industry structure, which could reduce competition and affect the transparency and predictability of transportation pricing.
- Regulatory Response Deadline: Union Pacific and Norfolk Southern must respond to competitors' comments by Friday, and if the application is accepted, public comments on the merger will be solicited, potentially impacting future industry consolidation dynamics.
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 314.91 USD with a low forecast of 295.00 USD and a high forecast of 354.00 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.
12 Analyst Rating
5 Buy
7 Hold
0 Sell
Moderate Buy
Current: 290.110
Low
295.00
Averages
314.91
High
354.00
Current: 290.110
Low
295.00
Averages
314.91
High
354.00
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.
