Benzinga | Dec 15, 2021 03:12PM EST

UBS Bumps Up Price Target For Two Railroad Companies

* UBS analyst Thomas Wadewitz raised Norfolk Southern Corp's (NYSE:NSC) price target to $343 (an upside of 19.6%) from $320 and maintained a Buy rating on the shares as part of a broader research note on U.S. Transportation.

* Wadewitz notes that as inventory builds up on the West Coast and as port fluidity continues to deteriorate, rail and intermodal are "winners in a supply chain loosening scenario."

* Wadewitz raised the price target on CSX Corp (NASDAQ:CSX) to $42 (an upside of 16%) from $39 and maintained a Buy rating on the shares.

* Recently, CSX's price target was raised by BMO Capital analyst Fadi Chamoun to $41 (an upside of 13.2%) from $40, and Outperform rating was maintained on the shares.

* The analyst said that the company is executing better than peers on both operational and commercial fronts and should experience well above historical average volume growth going forward.

* Price Action: NSC shares are trading higher by 1.01% at $286.61 and CSX higher by 0.81% at $36.21 on the last check Wednesday.