Recent CSX weakness offers buying opportunity, says Argus

Argus keeps a Buy rating and $39 price target on CSX but notes that the recent weakness in the stock price offers a buying opportunjity. As the trend toward de-globalization accelerates, companies and consumers should focus on the domestic supply chain, and railroads such as CSX are a critical link, the analyst tells investors in a research note. CSX revenue growth has resumed post pandemic, though inflationary pressures have challenged margins, and volumes are starting to pick up, Argus states, adding that the company’s balance sheet is also “solid”.