Jefferies reported on Monday that they have increased their rating on railroad operator Norfolk Southern Corp.(NSC).
The firm has upgraded NSC from a “Hold” to a “Buy,” and has increased the company’s price target from $74 to $86. This new price target suggests an 18% increase from the stock’s current price of $69.91.
An analyst from the firm noted, “the work in our 80+ page report out this morning, Jefferies’ Second Annual Coal Primer for Transport Analysts, gives us increased comfort that the market’s heightened fears over NSC’s earnings risk from coal should fade in 2013. This yields a trough-like multiple on trough-like EPS.”
Norfolk Southern shares were mostly flat during premarket trading Monday. The stock has declined -5% in the past year.
The Bottom Line
Shares of Norfolk Southern Corp have a 2.87% yield, based on Friday’s closing stock price of $69.69.
Norfolk Southern Corp.(NSC) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.