Barclays analyst Brandon Oglenski upgraded Norfolk Southern (NSC) to Equal Weight after the company rejected Canadian Pacific's (CP) takeover proposal. Pressure on management to deliver improved margins could serve as a positive catalyst for shares, Oglenski tells investors in a research note. The analyst sees continued challenges for railroad stocks, however, citing weakening industrial demand, high inventories and low commodity prices. He raised his price target for Norfolk shares to $95 from $76.

The Brotherhood of Maintenance of Way Employes Division of the International Brotherhood of Teamsters announced that it has determined a change in leadership at Norfolk Southern Corporation is necessary. Tony Cardwell, President of BMWED-IBT, commented: "The BMWED-IBT, after more than a year of non-committal hedging on reasonable, needed changes and untenable shakiness in management at Norfolk Southern, has determined that a change in leadership is needed for the freight rail carrier and its employees. Following yesterday's earnings call and a reasonably constructive meeting with a potential new leadership team, our Brotherhood has determined that a change at the top would be the best course of action for BMWED-IBT members. For many months since East Palestine, the BMWED has not been able to get assurances from the current leadership to implement needed policy and procedural changes to prevent such tragedies from reoccurring. At this juncture, seeing no path forward, we see no reason to support the current administration at Norfolk Southern."

UBS analyst Thomas Wadewitz lowered the firm's price target on Norfolk Southern to $294 from $302 and keeps a Buy rating on the shares. Norfolk Southern's Q1 was in like with the pre-report, reflecting weak revenue and margin pressure, the analyst tells investors in a research note.

Susquehanna analyst Bascome Majors lowered the firm's price target on Canadian Pacific Kansas City to $80 from $84 and keeps a Neutral rating on the shares. The firm views the company's nearer-term conservatism as prudent given the historic unpredictability of Canadian Teamsters labor negotiations, and remain on the sidleines primarily because of valuation.