Analyst Ken Hoexter of Bank of America Securities reiterated a Buy rating on Norfolk Southern (NSC – Research Report), reducing the price target to $272.00.
Ken Hoexter has given his Buy rating due to a combination of factors including Norfolk Southern’s operational improvements and volume gains. Despite facing weather-related challenges in the first quarter, the company has managed to exceed volume expectations, particularly in Intermodal, which is up 3.8% year-over-year. This growth is supported by improved service consistency and operational momentum, as evidenced by better train velocity and dwell times compared to peers.
Moreover, Norfolk Southern is expected to achieve productivity gains that will accelerate earnings, justifying a higher price objective of $272. The company’s ability to resume share repurchases and its focus on enhancing operational efficiency under the leadership of COO John ‘Operating Ratio’ ORr further bolster the positive outlook. These factors collectively contribute to Ken Hoexter’s confidence in recommending a Buy rating for Norfolk Southern’s stock.
Based on the recent corporate insider activity of 33 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of NSC in relation to earlier this year.