Deutsche Bank initiates coverage on some US railroad operators

Deutsche Bank initiates coverage on some U.S. railroad operators, including Norfolk Southern NSC.N and Union Pacific UNP.N, with "buy" rating

Says NSC's margin improvement trend will continue into 2025; has PT of $293, implying a 23% upside to stock's last close

Sets PT of $295 on UNP, representing a 20% upside to stock's last close

Initiates coverage on CSX CSX.O with "hold" and PT of $34, a 9% upside to stock's last close

"CSX faces several cost challenges and investment requirements in 2025, which, we believe, will restrict its ability to achieve attractive EPS growth" - brokerage

S&P 500 Rail Transportation .SPLRCRAIL sub-index up 3.4% YTD