BofA/Merrill analyst Ken Hoexter downgraded Norfolk Southern (NSC) to Neutral from Buy with an unchanged price target of $198. The benefits from its Precision Scheduled Railroad, or PSR, implementation are not materializing as fast as he expected and the company said it would not reach its 100 basis point operating ratio improvement target in 2019, although it reiterated confidence in achieving a 60% operating ratio by 2021, said Hoexter. Norfolk Southern's 63.8% operating ratio, when adjusted for the 110 basis points negative impact of a write-off of a receivable resulting from a legal dispute, compares with CSX (CSX) at 59.0% ex-real estate gains, Kansas City Southern (KSU) at 60.7%, Union Pacific (UNP) at 59.5%, and Canadian National (CNI) at 57.9%, Hoexter pointed out.

Check out this evening's top movers from around Wall Street, compiled by The Fly. HIGHER AFTER EARNINGSAudioEye (AEYE) up... To see the rest of the story go to thefly.com. See Story Here

The company said, "CN reaffirms its 2024 outlook and expects to deliver adjusted diluted EPS growth of approximately 10% and expects to invest approximately C$3.5 billion in its capital program, net of amounts reimbursed by customers. The Company also expects return on invested capital (ROIC) to be within the targeted range of 15%-17%. CN reiterates its longer-term financial perspective and continues to target compounded annual diluted EPS growth in the range of 10%-15% over the 2024-2026 period driven by growing volumes more than the economy, pricing above rail inflation and incrementally improving efficiency, all of which assumes a supportive economy."

Reports Q1 revenue C$4.25B vs. C$4.31B last year. "Our team of railroaders delivered to plan in the first quarter and our scheduled operating model continued to enhance our service to customers. Looking forward, we are confident for 2024. We are seeing the expected improvements in the economy, and our CN-specific growth opportunities are materializing. We remain committed to delivering on our growth agenda and powering the economy," Tracy Robinson, president and CEO, CN.

Ohio-based Ancora Holdings Group , which owns a large equity stake in Norfolk Southern Corporation updated shareholders on its campaign to elect seven unaffiliated and qualified candidates o the Company's 13-member Board of Directors at the Annual Meeting of Shareholders on May 9 Vote on the BLUE Proxy Card to elect the entire Shareholder Slate at the Annual Meeting. "Fellow Shareholder, Ancora is a meaningful investor in Norfolk Southern. We're asking you to elect seven new members to Norfolk Southern's 13-person Board at the May 9th Annual Meeting. Given the scope of this ask, we committed at the outset of our campaign to provide you with the respect and transparency an owner deserves when considering a change to a majority of a board of directors. As our campaign enters its final weeks, we will fulfill this commitment by asking you to focus on substantive matters and ignore the fearmongering, spamming and eleventh-hour stunts that often seep into the last days of contested elections. Rather than inundate you, we will continue to ask that you focus on one defining question when making your ultimate voting decision: Do you want Norfolk Southern to have leadership with the experience and judgment to properly implement Precision Scheduled Railroading so the Company can finally achieve the service, safety and long-term value realized by every other publicly traded Class I rail? If the answer is "yes," this Annual Meeting represents your best opportunity to usher in the type of change that drove lasting turnarounds at rails such as Canadian Pacific and CSX. Our position is supported by three point..."

Deutsche Bank placed a "Catalyst Call: Buy" on shares of Union Pacific (UNP) as a short-term investment idea. With all the attention Norfolk Southern (NSC) is getting in recent months, it is easy to overlook developments at other railroads, the analyst tells investors in a research note. The firm says Union Pacific is now the worst performing pail stock year-to-date. However, operating metrics "clearly show that UNP's renewed efforts on operations are gaining traction," contends Deutsche Bank. It keeps a Buy rating on the shares with a $266 price target.