Norfolk Southern inches lower after UBS downgrades to 'neutral'

Shares of railroad operator Norfolk Southern NSC.N fall ~1% to $303.97 premarket after UBS downgrades rating to "neutral" from "buy"

UBS says Q4 results, 2026 commentary point to weaker yields and operating ratio compared with brokerage's assumptions

Says Surface Transportation Board’s rejection of merger application with Union Pacific UNP.N suggests the deal process could create a greater overhang on NSC stock

However, UBS raises PT to $342 from $320.00, representing a ~12% upside to the stock's last close

Says PT raise based on brokerage's PT for UNP of $253 along with $89 share cash consideration offered by UNP to purchase NSC

7 brokerages rate NSC "buy" or higher and 16 "hold"; their median PT is $305 - LSEG-compiled data

In 2025 NSC shares rose 23%