Sep. 25 at 2:00 PM
Wells Fargo upgraded CSX to Buy from Hold, raising the price target to
$40 and 2026 EPS estimates to
$1.90, valuing shares at 21 times projected earnings versus about 16 times historically. A BNSF-CSX intermodal shipping collaboration could add up to
$375 million in annual revenue. Operational headwinds are easing, and new agreements plus completed construction projects may boost volume and reduce costs.
CSX has gained about 5% this year but fell roughly 5% after Union Pacific and Norfolk Southern announced a merger, which could heighten competition. BNSF and CSX are not pursuing a merger, though further consolidation may occur if the UP/NS deal is approved. Overall, 69% of analysts rate CSX a Buy, above the S&P 500 average of 55%, with an average price target of
$38.
$CSX $SPX $UNP $NSC