Goldman Sachs Downgrades Norfolk Southern to “Neutral”; Boosts Price Target (NSC)

Norfolk Southern Corp. (NSC) saw its rating downgraded at Goldman Sachs on Thursday as the analyst believe there are better plays in the railroad sector.

The analysts downgraded NSC from “Buy” to “Neutral” and raised its price target from $67 to $69. This new target is a +6.5% upside to Wednesday’s closing price of $64.75.

A Goldman Sachs analyst commented, “Our thesis remains unchanged and we raise our price target to reflect mid-cycle multiples. We think valuations remain undemanding, reflecting weak export coal demand and a material negative fuel surcharge lag.”

Norfolk Southern shares were down 36 cents, or -0.56%, during premarket trading on Thursday. The stock is down -14.02% over the past year.

The Bottom Line
Shares of Norfolk Southern (NSC) have a 3.09% dividend yield, based on last night’s closing stock price of $64.75. The stock has technical support in the $60 price area. If the shares can firm up, we see overhead resistance around the $67-$70 price levels.

Norfolk Southern Corp. (NSC) is not recommended at this time, holding a DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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