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 $40.00 price target.
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Ken Hoexter has given his Buy rating due to a combination of factors including CSX’s recent strategic moves and anticipated future performance. Despite the current quarter’s carload growth being below initial expectations, CSX is showing resilience in certain sectors such as Autos and Coal, which are performing better than previously forecasted. Additionally, the company’s intermodal volumes have remained stable, with international volumes being more consistent than anticipated.
Furthermore, the new intermodal partnership with BNSF is expected to provide significant volume growth in the fourth quarter, and infrastructure improvements like the Howard St tunnel and Blue Ridge subdivision are set to enhance capabilities in the near future. Although the price objective has been slightly lowered, the valuation remains within a favorable range due to expected earnings recovery and improved service levels. These factors contribute to a positive outlook, supporting the Buy rating.
According to TipRanks, Hoexter is a 3-star analyst with an average return of 1.3% and a 46.71% success rate. Hoexter covers the Industrials sector, focusing on stocks such as CSX, FedEx, and United Parcel.
In another report released on September 21, Jefferies also reiterated a Buy rating on the stock with a $38.00 price target.