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Research Alert: CFRA Downgrades Norfolk Southern Corp. To Hold From Buy With A Target Of $320

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We maintain our target price of $320 as shares trade in line with the Union Pacific Corporation (UNP 271 ****) acquisition price. We use a forward P/E of 23.3x our 2027 EPS view of $13.72, a premium to the five-year average of 17.7x, justified by an M&A premium. NSC reported Q1 adjusted railway operating revenue of $3.0 billion, a marginal 0.2% increase Y/Y. The company achieved an adjusted EBIT margin of 31.3%, reflecting an 80-bp contraction from the prior year as inflationary headwinds and higher fuel prices partially offset productivity gains. A key highlight of the quarter was a significant earnings beat, with adjusted EPS of $2.65 surpassing the consensus estimate of $2.51. On January 16, 2026, the Surface Transportation Board rejected the UNP/NSC merger application as incomplete, pushing the expected closing timeline to mid-to-late 2027. Washington Analysis has reduced approval odds to 70% from 80%, reflecting heightened regulatory scrutiny.

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Research Alert: CFRA Reiterates Buy Opinion On Shares Of Pool Corporation

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