BofA Securities analysts shifted their recommendation for Norfolk Southern (NYSE:NSC) from Buy to Neutral, along with a lowering of the price target from $266.00 to $215.00.

The bank's rationale for this adjustment is grounded in a revised valuation method, as they now consider the company's estimated 2024 earnings per share to be valued at 16.5 times earnings, compared to the previous 19 times. This adjustment aligns the target multiple more closely with the midpoint of the range, taking into account the ongoing service challenges faced by NSC.

The external factors impacting NSC's operations, which include concerns about data integrity and disruptions in customer movements, raise the potential for a loss of market share compared to its industry peers.

Consequently, the analysts also revised downward their EPS estimates for 2023, 2024, and 2025, with figures now standing at $11.90, $13.00, and $14.50, respectively. This is a downward adjustment from the previous estimates of $12.60, $14.00, and $15.45.