Susquehanna upgrades ‘cleanest’ U.S. rail recovery play CSX to Positive

As previously reported, Susquehanna upgraded CSX (CSX) to Positive from Neutral with a price target of $42, up from $35, calling it the “cleanest play on U.S. rail recovery.” CSX offers fewer lingering risks than Norfolk Southern (NSC) less than a year since the East Palestine incident and lower expectations than Union Pacific (UNP) less than five months since Jim Vena took over as CEO, the analyst tells investors. Rail isn’t entirely immune to truckload pricing, but the U.S. rails’ challenges that tempered the firm’s long-held bullishness in 2022 were more industry-specific and the firm believes “they’ve largely played out,” the analyst added.