Norfolk Southern Sentiment to Be Driven by Likelihood of Union Pacific Merger Approval, RBC Says

11:49 AM EDT, 10/23/2026 (MT Newswires) -- Norfolk Southern (NSC) reported a "good quarter" in Q3, but the likelihood of approval for its merger with Union Pacific (UNP) will probably drive sentiment, RBC Capital Markets analysts said in a Thursday note. Norfolk Southern reported Q3 adjusted earnings of $3.62 per diluted share, ahead of a FactSet estimate of $3.46. RBC analysts said the company's commentary on volumes was constructive, with management more positive on coal due to strong export demand and utility restocking. Norfolk's investments in terminals, technology and locomotives are expected to capture near-term opportunities and support growth, the analysts said. RBC raised its 2026 adjusted earnings per share estimate to $13.04 from $12.85. Analysts polled by FactSet expect $13.02. RBC retained a sector perform rating but increased its price target on the stock to $350 from $330. Price: 331.50, Change: -6.73, Percent Change: -1.99