BofA has elevated its rating on CSX (CSX, Financial) from Neutral to Buy, boosting its price target to $42 from $34. This change follows insights suggesting that Union Pacific is potentially considering the acquisition of an Eastern railroad, a move that brings CSX into the spotlight. CSX, alongside Norfolk Southern, is identified as one of the two public Class I railroads in the East, which could position it as a target for such acquisitions.
The investment firm highlighted CSX's service enhancements as a key factor justifying a reevaluation of its market value. In addition to CSX, BofA also adjusted its price target for Norfolk Southern, raising it to $305, reflecting broader confidence in the Eastern rail sector. These updates are part of a broader strategy to reassess target multiples as the year progresses, particularly within the rail industry.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 24 analysts, the average target price for CSX Corp (CSX, Financial) is $35.17 with a high estimate of $41.00 and a low estimate of $27.00. The average target implies an upside of 5.73% from the current price of $33.26. More detailed estimate data can be found on the CSX Corp (CSX) Forecast page.
Based on the consensus recommendation from 28 brokerage firms, CSX Corp's (CSX, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for CSX Corp (CSX, Financial) in one year is $35.52, suggesting a upside of 6.79% from the current price of $33.26. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the CSX Corp (CSX) Summary page.
