UPDATE: Jefferies Color On NSC Downgrade

Jefferies, which raised its PT on shares of Norfolk Southern NSC, is providing some color on the stock. “We downgraded NSC to Hold as the stock nears our price target and following a massive sentiment swing,” Jefferies writes. “We'd revisit our rating upon a pull-back. “YTD, NSC's up 19% (13% in the last seven sessions alone) vs. transports up 7% and the S&P up 8%, and is now within 5% of our year-end target. Coming out of NSC's solid 1Q quarter, our sense was that the shares could be an interesting catchup story vs. CSX Corp. CSX. “This admittedly played out much faster than we expected. Combined with an enormous sentiment swing over the past two weeks, we feel it prudent to tap the brakes.” Norfolk Southern currently trades at $77.37.