Norfolk Southern price target raised to $255 from $248 at BofA

BofA analyst Ken Hoexter raised the firm’s price target on Norfolk Southern to $255 from $248 and keeps a Buy rating on the shares. Norfolk Southern targets 100bps-150bps improvement in each of the next three years, from a 68% operating ratio in 2023, a level that would still leave it with the lowest Class I rail margin by a couple hundred basis points, assuming the other rails don’t make progress in the interim, the firm said in a research note on Friday. BofA believes its conservatism resulted from it adding structural operating costs in a post-East Palestine environment. The firm thinks this raises focus on management to accelerate cost cutting and add growth opportunities.