Why We’re Revising Our Price Estimate For Norfolk Southern To $86
We are raising our price estimate for Norfolk Southern by 20%, which is primarily driven by a revision to our EBITDA margin forecasts for the company. The company’s cost reduction initiatives have been extremely successful with a combination of its cost reduction initiatives and lower volume-related costs (including fuel expenses) resulting in a 630 basis point year-over-year improvement in the company’s operating ratio (operating expenses as a percentage of revenue) to 70.1% in Q1 2016. With the company targeting an improvement in its operating ratio to 65% in the long term, we have correspondingly revised upwards our margin forecasts for the company by the year 2020. This has resulted in an upward revision to our price estimate for the company.
Have more questions about Norfolk Southern? See the links below.
- What Is Norfolk Southern’s Revenue And EBITDA Breakdown?
- What Is Norfolk Southern’s Fundamental Value Based On 2015 Results?
- How Has Norfolk Southern’s Revenue Composition Changed Over The Last 5 Years?
- By What Percentage Did Norfolk Southern’s Revenue & EBITDA Grow In The Last 5 Years?
- By What Percentage Can Norfolk Southern’s Revenue & EBITDA Grow In The Next 3 Years?
- How Will Norfolk Southern’s Revenue Composition Change By 2020?
- What Would Be The Impact Of A 100 Basis Points Increase In Norfolk Southern’s Share Of U.S. Rail Intermodal Shipments?
- Norfolk Southern Corporation: A Look Back At The Year 2015
- What’s Next For Norfolk Southern Stock After A 21% Fall This Year?
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- Will Norfolk Southern Stock Rebound To Its Pre-Inflation Shock Highs?
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- Why Did Norfolk Southern Stock Fall 30% Since 2021?
- Pick Either Norfolk Southern Stock Or This Travel Company: Both May Offer Similar Returns
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