Nucor earnings beat by $0.08, revenue fell short of estimates
Monday - Benchmark analyst Nathan Martin has reaffirmed a Buy rating on CSX Corporation (NASDAQ:CSX), maintaining a price target of $38.00. In his assessment, Martin acknowledged CSX's fourth-quarter earnings per share (EPS) of $0.42, which met expectations due to a tax benefit, despite a revenue shortfall. According to InvestingPro data, CSX currently trades near its 52-week low, with a market capitalization of $64.31 billion and maintains an impressive track record of 44 consecutive years of dividend payments. He highlighted the company's forecast of enduring challenges through 2025, including a $300 million net impact from lower export coal and fuel prices. Additionally, CSX is bracing for a $100 million headwind from construction projects, although a $50 million recovery is anticipated from the cycling of previous year's natural and infrastructure setbacks. InvestingPro analysis reveals that 12 analysts have recently revised their earnings downward for the upcoming period, while the company maintains a FAIR overall financial health score.
CSX's management anticipates low to mid-single digit volume growth for the full year, driven by merchandise and intermodal segments, which should offset the expected decline in coal volumes. The analyst pointed out that while the first half of 2025 is expected to be particularly challenging, the company is on track to meet its three-year EPS compound annual growth rate (CAGR) target as the effects of export met and fuel price pressures ease, infrastructure projects conclude, and service levels improve.
Martin supports his Buy rating by noting CSX's current share valuation, which trades at 15.2 times projected 2026 EPS, compared to the peer average of 18.3 times. He suggests that this presents an attractive valuation relative to its peers. The analyst's stance remains unchanged, as he reiterates the $38 price target for CSX stock. Current InvestingPro metrics show the stock trading at a P/E ratio of 18.56x, with analyst targets ranging from $28 to $42. Subscribers can access 8 additional ProTips and comprehensive valuation metrics in the Pro Research Report.
In other recent news, various analyst firms have revised their outlooks on CSX Corporation. RBC Capital reduced its price target on CSX to $33, maintaining a Sector Perform rating. This shift followed CSX's fourth-quarter earnings report, which indicated significant cost pressures in the first quarter of 2025, expected to result in less than 2% EPS growth.
Baird also adjusted CSX's stock price target down to $38, maintaining an Outperform rating. The firm acknowledged the company's strong fundamentals and consistent dividend increases despite anticipated difficulties. Stifel maintained its Buy rating and $37 price target for CSX, anticipating an upturn for the company in 2026 as disruptive factors diminish and new infrastructure becomes operational.
BMO Capital Markets reduced its price target for CSX to $38, maintaining an Outperform rating, following CSX's fourth-quarter earnings, which fell short of BMO's expectations. However, the firm sees a solid medium-term growth opportunity for CSX, despite near-term headwinds. Raymond (NSE:RYMD) James reduced its price target for CSX to $37, maintaining an Outperform rating, highlighting the potential for CSX's improved service and growth strategy to unlock new avenues for growth. These are recent developments in the analysis of CSX Corporation.
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