Goldman (NYSE:GS) Says Norfolk Southern's (NYSE:NSC) Margins Under Pressure

Goldman Sachs (NYSE:GS) downgraded Norfolk Southern (NYSE:NSC) from "Neutral" to "Sell," citing pressures on margins.

Norfolk Southern, which for the most part transports commodities and consumer products, said in order to improve their services they're going to have to increase capital expenditure, which could affect margins and earnings.

Coal coming from Appalachia is expected to decrease for transporting, along with the ability to increase pricing in general.

Norfold was trading at $60.37, dropping $0.18, or 0.30 percent, at 2:26 PM EST. Goldman slashed their price target on them from $62 to $59.