CSX, the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Ken Hoexter from Bank of America Securities reiterated a Buy rating on the stock and has a $41.00 price target.
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Ken Hoexter has given his Buy rating due to a combination of factors that highlight CSX’s potential for growth and strategic value creation. The new CEO, Steve Angel, has articulated a vision to transform CSX into a leading railroad company, leveraging strategic opportunities such as transcontinental mergers and acquisitions. With significant cost reductions expected from the completion of major projects, CSX is poised for mid-teens EPS growth by 2026, supported by the CFO’s anticipation of $100 million in non-recurring costs.
Additionally, CSX has demonstrated strong operational performance, achieving its best quarterly network performance in nearly five years. This is reflected in improved metrics such as velocity and dwell times, which COO Mike Cory believes will continue to enhance network resiliency and capacity. The company has also reiterated its volume growth targets and is expected to maintain incremental improvements in its operating ratio. Despite a slight year-over-year decline in normalized EPS for 3Q25, CSX’s results exceeded expectations, reinforcing the Buy rating with a price objective of $41, based on a favorable valuation outlook and anticipated earnings rebound.
According to TipRanks, Hoexter is a 3-star analyst with an average return of 1.5% and a 48.00% success rate. Hoexter covers the Industrials sector, focusing on stocks such as CSX, United Parcel, and CH Robinson.
In another report released today, TD Cowen also reiterated a Buy rating on the stock with a $39.00 price target.