6 big analyst cuts: Norfolk Southern stock slashed on Ohio derailments | Pro Recap

Investing.com  |  Author Davit Kirakosyan

Published Mar 15, 2023 05:55AM ET

Updated Mar 15, 2023 08:54AM ET

By Davit Kirakosyan

Investing.com -- Here is your daily Pro Recap of the biggest analyst downgrades you may have missed since yesterday’s close.

Norfolk Southern cut to Hold after train derailments/h2

Argus downgraded Norfolk Southern (NYSE:NSC) to Hold from Buy due to "micro issues" arising from two derailments and a collision involving the company's trains, including the fiery East Palestine, Ohio derailment that released toxic fumes into the air and precipitated a mass evacuation of nearby residents.

Norfolk Southern has come under the withering eye of regulators and the U.S. Senate. ... Prior to the series of incidents, we had been anticipating mid-single-digit growth for the year for Norfolk Southern. However, we think the new costs associated with remediation programs will cut into profitability and we are lowering our EPS estimates.

The firm added that the shares have also traded in a "bearish pattern of lower highs and lower lows since December 2021."

Norfolk Southern shares were recently down 1.6% at $204.75.

As always, InvestingPro subscribers got this news first.

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