Regulators have resumed review of Union Pacific's proposed US$85 billion acquisition of Norfolk Southern, drawing fresh attention to fuel surcharges and pricing practices at the combined railroad. Norfolk Southern shares trade at US$345.71, with a 1-month return of 3.21% and a year-to-date return of 20.11%. Analysts' consensus price target is US$363.72, implying the stock is about 5% undervalued, while a discounted cash flow model from Simply Wall St suggests a fair value of US$269.79 per share. The review's outcome could reshape the rail industry structure and affect Norfolk Southern's revenue and margin outlook.
Norfolk Southern CorporationRegulators resumed review of Union Pacific's acquisition of Norfolk Southern, which could affect its revenue and margins.
Union Pacific CorporationRegulators resumed review of Union Pacific's proposed acquisition of Norfolk Southern, impacting its merger prospects.
