Bernstein Raises Norfolk Southern (NSC) Price Target Amid Merger Talks

Norfolk Southern Corporation (NYSE:NSC) is one of the 12 Best Logistics Stocks to Buy According to Hedge Funds. On July 21, Bernstein SocGen Group increased its price target for Norfolk Southern Corporation (NYSE:NSC) from $295 to $305 while keeping an “Outperform” rating.

Bernstein analyst David Vernon sees possible value creation in a potential merger between Norfolk Southern Corporation (NYSE:NSC) and Union Pacific (UNP).

Bernstein Raises Norfolk Southern (NSC) Price Target Amid Merger Talks

A bird’s eye view of a long freight train rumbling along the tracks.

Vernon believes that both companies could benefit from this “more friendly deal than a typical takeout.”

According to the analyst, shareholders of Norfolk Southern Corporation (NYSE:NSC) and Union Pacific (UNP) could unlock significant value through this merger that otherwise would be difficult to achieve.

The talks are in early stages and although Bernstein has not fully included an approved deal in its current analysis, the updated price target reflects movement in that direction.

Norfolk Southern Corporation (NYSE:NSC) is an American freight railway company that operates a freight transportation network across 22 states and Washington, DC.

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Disclosure: None. This article is originally published at Insider Monkey.