Deutsche Bank Has Buy On Norfolk Southern Corp

Deutsche Bank has a Buy rating and a $88 price target on shares of Norfolk Southern Corp

. In a note to clients, Deutsche Bank writes, "NSC reported adjusted Q2 EPS of $1.38, above our estimate of $1.23 and Consensus of $1.29 on export coal volume strength and core pricing improvement. Q2 results exclude $63 million ($0.18/share) of non-recurring favorable income tax benefits. Incremental margins expanded to 33% in Q2 (from 27% in Q1) as NSC leveraged strong export coal volumes (up 24% y/y), longer-haul utility coal business to the Southeast, intermodal carload growth (up 9% y/y), and solid above rail-inflation pricing. Reiterate Buy with new PT of $88." Shares of NSC lost 81 cents on Friday to close at $75.70.