JPMorgan Adjusts Price Target on Norfolk Southern to $323 From $318

StoneX maintained a Hold rating on Norfolk Southern (NSC) after its Q3 earnings beat estimates, with adjusted EPS of $3.62 vs. $3.47 expected. Revenue also surpassed forecasts, driven by higher volumes and pricing. The company's P/E ratio is 27.5, and it is considered overvalued by InvestingPro. Management noted resilient consumer activity but warned of potential pressure from elevated energy prices.

TD Cowen kept a Buy rating on Norfolk Southern (NSC) with a $379 price target, suggesting a 12.1% upside. The company reported strong Q3 results, with adjusted EPS of $3.62, beating estimates. It also showed stable demand in key markets, like chemicals and metals, despite diesel fuel headwinds.

Union Pacific reported 6% higher freight volume and 1% fewer employees in Q3, with revenue up 15% to $7.2B and EPS up 16% to $3.49. Productivity improved 5%, and operating costs rose 4%. The company awaits regulatory approval for its merger with Norfolk Southern, targeting a 2027 close. CEO Jim Vena noted labor cost increases and hiring plans.

CSX, Union Pacific, and Norfolk Southern reported record Q3 revenue due to high diesel prices shifting freight to rail. CSX saw $4B revenue (+12% YoY), Union Pacific $7.2B (+15%), and Norfolk Southern $3.5B (+14%). Intermodal volume grew significantly, but pricing benefits await 2027 contract resets. Fuel surcharges drove revenue growth, with diesel prices nearing all-time highs.

Norfolk Southern reported a 14% year-over-year revenue increase to $3.53 billion in Q3, driven by higher fuel surcharges and volume growth. Operating expenses rose 19% to $2.38 billion, leading to a 5% increase in operating income. The company revised its 2026 adjusted operating expense outlook to $9 billion. Norfolk Southern and Union Pacific are awaiting regulatory approval for their planned merger.

Norfolk Southern reported record Q3 revenue of $3.5B, up 14% YoY, with operating ratio at 67.4%. Revenue growth driven by volume increase and higher fuel surcharges. EPS rose 7% to $3.37. Adjusted EPS increased 10% to $3.62. CEO attributed demand growth to trucking constraints. According to the company, merger-related expenses and incident costs were excluded from adjusted figures.