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Investing.com - Bernstein SocGen Group raised its price target on Norfolk Southern (NYSE:NSC) to $305.00 from $295.00 on Monday, while maintaining an Outperform rating on the stock. The railway giant, currently trading at $276.66 and approaching its 52-week high of $280, has demonstrated strong momentum with a 24.12% return over the past year. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, with technical indicators suggesting overbought conditions.
The price target increase comes as Bernstein analyst David Vernon sees potential value creation in a possible transaction between Norfolk Southern and Union Pacific .
Vernon also raised the price target for Union Pacific (NYSE:UNP) from $271 to $286, suggesting both companies could benefit from what he describes as a "more friendly deal than a typical takeout."
The analyst believes shareholders of both companies have the opportunity to "unlock significant value" through this potential transaction that would otherwise be unattainable.
While not fully incorporating an approved deal into the analysis, Bernstein’s updated price targets reflect movement in that direction, with the firm reiterating its Outperform rating on both Norfolk Southern and Union Pacific.
In other recent news, Norfolk Southern has been the focus of several analyst assessments and corporate developments. BofA Securities raised its price target for Norfolk Southern to $305, maintaining a Buy rating, citing potential mergers and acquisitions as a driver for valuation interest in U.S. railroads. In contrast, Citi downgraded Norfolk Southern from Buy to Neutral, raising its price target to $288 due to concerns over elevated valuations in the transportation sector. Goldman Sachs also downgraded the stock to Neutral, maintaining a price target of $278, expressing caution over potential risks such as slower macroeconomic growth and sector volatility.
Additionally, Norfolk Southern announced the resignation of its Chairman Claude Mongeau, with a new chair to be elected at the upcoming board meeting. The company recently held its 2025 Annual Meeting of Shareholders, where thirteen directors were elected, and KPMG LLP was ratified as the independent auditor for the fiscal year. Shareholders also approved the executive compensation package in an advisory vote. These developments are part of Norfolk Southern’s ongoing corporate activities and strategic assessments.
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