$NSC

Union Pacific (UP) reports that shippers accounting for over 30% of its volume publicly support its proposed merger with Norfolk Southern (NS). UP's marketing chief notes that many other customers are quietly evaluating the deal. Opponents, including trade associations, argue the merger will raise rates and reduce options. Over 500 of UP's 10,000 customers have expressed support, while 800+ parties plan to participate in the merger proceedings.

Union Pacific CEO Jim Vena expressed 99.99% confidence in regulatory approval for its $85B acquisition of Norfolk Southern, citing efficiency gains and competitive advantages. The merger, subject to STB approval, faces opposition from labor unions, agricultural groups, and competitors, who argue it could create a near-monopoly. Vena claims the combined network would save customers 24-48 hours and better compete with trucking. The STB decision is expected in 2027.

Citigroup reduced its price target for Norfolk Southern from $376 to $347. The stock closed at $316.31, up 0.03% on the day and 1.06% over a month. JPMorgan also cut its target to $318 from $338, maintaining a neutral rating.

The International Brotherhood of Electrical Workers (IBEW) opposes Union Pacific's (UNP) proposed acquisition of Norfolk Southern (NSC). The IBEW, representing 10,000 railroad workers, cites concerns over job displacement and lack of commitments from Union Pacific. The merger faces opposition from rival railroads and some shippers, while approval is taking longer than expected.

Union Pacific (UNP) seeks to acquire Norfolk Southern (NSC) in an $85B deal, pending STB approval. The merger aims to create a transcontinental railroad, improve efficiency, and compete with trucking. Critics argue it could harm competition and consumers. Both companies promise job security for unionized employees. A decision is expected next year.

UBS reduced profit estimates for rail stocks by 1% to 2% due to higher diesel prices, according to analyst Thomas Wadewitz. The increase in fuel costs diminishes the year-over-year fuel benefit to operating income.

JPMorgan reduced its price target for Norfolk Southern from $338 to $318, while maintaining a neutral rating. The stock has seen a 5-day change of +2.31% and a year-to-date change of +9.95%.

Railroads have more than doubled fuel surcharges due to high diesel prices, impacting U.S. farmers. According to the Association of American Railroads, railroads carry 1.6 million carloads of grain annually, accounting for 24% of domestic grain movements. Farmers may absorb these costs, as passing them on to importers could lead to lost business. A potential merger between Union Pacific and Norfolk Southern could further affect transportation costs.

Norfolk Southern Corp. shares rose 2.31% to $317.44 on Friday, outperforming the S&P 500 and Dow Jones averages. This marks the stock's second day of consecutive gains. According to the company, the broader market also experienced a positive trading session.

Norfolk Southern train derailed in Springville, Alabama, after colliding with a commercial vehicle. One minor injury confirmed. 34 cars derailed, 21 overturned, including hazardous-material cars (none leaked). Cleanup may take weeks. Rail traffic resumed Friday. Investigation ongoing.