Norfolk Southern To See Volume Gains Amid Productivity Improvements Despite Management Churn: Analyst
Portfolio Pulse from Nabaparna Bhattacharya
Norfolk Southern Corporation (NSC) is expected to see volume gains and productivity improvements despite recent management changes. BofA Securities analyst Ken Hoexter reiterated a Buy rating with a price target of $259, citing operational efficiency and earnings growth. NSC has appointed Mark George as the new CEO, replacing Alan Shaw due to policy violations. The company aims for a 66% operating ratio in 2024. NSC stock has gained over 28% in the past year, and investors can gain exposure through ETFs like iShares U.S. Transportation ETF (IYT) and Aztlan North America Nearshoring Stock Selection ETF (NRSH).

September 12, 2024 | 7:40 pm
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POSITIVE IMPACT
Investors can gain exposure to Norfolk Southern's expected gains through the iShares U.S. Transportation ETF, which includes NSC as a component.
As NSC is a component of the iShares U.S. Transportation ETF, positive developments in NSC could benefit IYT. The ETF's performance may improve if NSC's stock price rises.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Norfolk Southern is expected to see volume gains and productivity improvements despite management changes. BofA Securities reiterated a Buy rating with a $259 price target, citing operational efficiency and earnings growth.
The appointment of a new CEO and focus on operational efficiency are seen as positive steps for Norfolk Southern. The analyst's Buy rating and price target suggest confidence in the company's future performance, likely leading to a positive short-term impact on the stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100