Norfolk Southern (NSC)’s Downgrade Was Ill-Advised, Days Jim Cramer

Core Viewpoint - Norfolk Southern Corporation (NYSE:NSC) has shown a significant increase in share price over the past year, but recent earnings results indicate a decline in revenue, leading to mixed analyst opinions on the stock's future performance [2][5]. Financial Performance - Norfolk Southern's shares have increased by 23.6% over the past year and by 10% year-to-date [2]. - The company reported an adjusted profit per share of $3.22, up from $3.04 in the previous year [2]. - Revenue for the latest quarter was $3 billion, reflecting a 2% annual decline [2]. Analyst Ratings - Baird has reduced the share price target for Norfolk Southern from $293 to $288 while maintaining a Neutral rating [2]. - Deutsche Bank downgraded the stock from Buy to Hold, citing concerns related to a planned merger [2]. - Jim Cramer criticized the downgrade from Deutsche Bank, suggesting it was ill-advised [3][5]. Industry Context - The planned merger between Norfolk Southern and Union Pacific has raised concerns about potential fluctuations in the company's topline due to its impact on the railroad industry [2].