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Investing.com - Benchmark raised its price target on CSX (NASDAQ:CSX) to $40.00 from $37.00 while maintaining a Buy rating, citing network improvements and upcoming project completions. The stock, currently trading at $35.00, has shown strong momentum with a 7.95% return over the past six months. According to InvestingPro data, analyst targets range from $27 to $45, reflecting diverse market opinions.
The railroad operator reported second-quarter earnings per share of $0.44, exceeding both Benchmark’s estimate and consensus by two cents, driven by lower operating expenses. With a robust gross profit margin of 46.9% and EBITDA of $6.63 billion over the last twelve months, CSX maintains its position as a prominent player in the Ground Transportation industry. The company’s network is improving following difficult weather conditions in the first quarter, though not yet back to year-ago levels.
CSX’s two major improvement projects—Howard Street Tunnel and Blue Ridge—remain on schedule for fourth-quarter completion. Once completed, these projects are expected to increase capacity and service levels while eliminating approximately $10 million per month in network disruption costs.
The company anticipates volume growth for full-year 2025 despite uncertainties around tariffs, trade, and the economy. Management highlighted new business wins, a robust industrial pipeline, and potential upside in domestic coal compared to original expectations.
Double-stack clearance is expected by the second quarter of 2026, which should create opportunities for incremental business, according to Benchmark’s analysis of the company’s outlook. For deeper insights into CSX’s financial health and growth prospects, including 12 additional exclusive ProTips and comprehensive valuation metrics, visit InvestingPro, where you’ll find detailed analysis in our Pro Research Report.
In other recent news, CSX Corporation reported its second-quarter 2025 earnings, showing a mixed financial outcome. The company achieved earnings per share of $0.44, surpassing the expected $0.42, but experienced a slight revenue miss with $3.57 billion compared to the anticipated $3.58 billion. Evercore ISI responded to these results by raising its price target for CSX to $39, citing the earnings beat as a positive indicator. Similarly, Raiffeisen increased its price target to $39, highlighting the ongoing success of CSX’s ONECSX initiatives. Barclays (LON:BARC) also adjusted its price target to $38, maintaining confidence in CSX’s market position. In other developments, Citi reiterated a Buy rating on Hess (NYSE:HES) Midstream amid speculation about Chevron (NYSE:CVX)’s potential acquisition plans. Citi noted that Hess Midstream’s contract structure could make it an attractive target for Chevron. These developments reflect current investor sentiment and strategic evaluations by financial analysts.
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