Deutsche upgrades Norfolk Southern to Buy, sees positive revisions

Deutsche Bank analyst Amit Mehrotra upgraded Norfolk Southern to Buy from Hold with a price target of $266, down from $273. The company’s average train speeds are up 16% since mid last year and average dwell is down 7%, the analyst tells investors in a research note. The firm believes this improvement "serves as a relief valve" for capacity that should allow for less supply constraints on growth that defined much of the prior two years. Deutsche also notes Norfolk Southern has made significant progress on adding train and engine employees and taken "bold action" to bring in new operating talent. The analyst sees enough conservatism in the company’s outlook to allow for upward revisions through the year.