Evercore rejigs railroad firms' ratings on overall cautious view

NSC Groupe SA

21/12/2022 12:44

** Evercore ISI upgrades railroad operator Union Pacific
Corp  UNP.N  to "outperform" from "in-line"; raises PT to $232
from $204
    ** Brokerage downgrades Norfolk Southern Corp  NSC.N  to
"in-line" from "outperform", but raises PT to $262 from $240
    ** Says railroad firms have potential to gain market share
and grow service volumes considering the cost saving focus of
shipping industry and tapering demand and profit margins
    ** Evercore downgrades NSC citing relative stock
underperformance with industry peers 
    ** Upgrades UNP due to co's potential for EPS growth and
return on invested capital (ROIC) in the next two years
    ** Brokerage, however, taking a cautious view on sector's
pace of recovery due to macroeconomic headwinds
    ** Up to Tuesday's close, UNP and NSC down ~18% YTD each
 (Reporting by Shristi Achar A in Bengaluru)
 ((Shristi.AcharA@thomsonreuters.com;))