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Norfolk Southern slips as Wall Avenue brokers lower ranking after earnings miss By allskynews

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Norfolk Southern (NYSE:), a significant rail freight firm, has seen its inventory hit with ranking downgrades from three Wall Avenue brokerage corporations following an earnings miss.

Analysts identified the corporate’s must meet up with its friends within the rail business.

Inventory slipped 1.8% in pre-market Monday.

Morgan Stanley analysts lower the ranking from Equal-weight to Underweight on a number of issues, together with the hole between Norfolk Southern and its friends, modest long-term targets, and the absence of a concrete plan to realize these targets.

They expressed skepticism in regards to the present consensus on the corporate’s earnings per share expectations and its inventory a number of, suggesting they’re much less justifiable in comparison with its friends.

Equally, at Stifel, analysts downgraded from Purchase to Maintain. They lowered the worth goal from $250 to $233 and identified that the corporate’s self-help story is not unfolding as anticipated, as Norfolk Southern has but to ship outcomes that exhibit a narrowing of its efficiency hole with Class-1 rail friends.

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“Given latest enhancements in share value and the marginal enchancment in profitably for 2024, we’re downgrading NSC shares,” they mentioned.

Lastly, the inventory was additionally downgraded at TD Cowen, the place analysts mentioned the corporate is prone to play the catch-up sport with friends.

“Whereas the U.S. Class I rails wrestle to search out the following development lever for prime line development, NSC’s price construction ought to proceed to notably underperform its peer group for this yr.”

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