Deutsche Bank analyst Amit Mehrotra upgraded Norfolk Southern (NSC) to Buy from Hold and raised his price target for shares to $205 from $170 reflecting increased conviction that out-year earnings power is underappreciated. The analyst tells investors in a research note that he also sees "good support" for shares from repurchases, reflecting accelerated share buybacks and recent comments from management around "examining" its capital structure and "evaluating" leverage. This morning, the analyst also downgraded Union Pacific (UNP) to Hold.

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.