(The following report appeared at NewRatings.com on April 23.)
NEW YORK — Analysts at Prudential Financial reiterate their “neutral weight” rating on Norfolk Southern, while raising their estimates for the company. The target price has been raised from $23 to $25.
In a research note published yesterday, the analysts mention that Norfolk Southern reported its Q104 EPS significantly ahead of the consensus. The company’s impressive results for the quarter were driven by robust growth in railroad revenues and healthy operating leverage, Prudential Financial adds. The EPS estimates for 2004 and 2005 have been raised from $1.50 to $1.68 and from $1.60 to $1.85 to reflect the expectation of significant margin expansion in the medium-term.