(Reuters circulated the following on July 10.)
NEW YORK — J.P. Morgan Securities upgraded railroad company Norfolk Southern Corp. to “overweight” from “neutral,” on the expectation of strong second-quarter results, driven by high coal volumes and a tightening truckload market.
JP Morgan said it expects the high-margin export coal to account for about 12 percent of coal tons for Norfolk in 2008, giving the company a greater leverage to the segment versus the Western U.S. rails.
The brokerage said the stock had room for upside as earnings estimates and valuation reflected lower expectations for Norfolk versus its peers.
The company’s shares closed at $60.35 Wednesday on the New York Stock Exchange.