CSX stock price target maintained at $40 by Benchmark on strong Q3

Published 17/10/2025, 14:38
CSX stock price target maintained at $40 by Benchmark on strong Q3

Investing.com - Benchmark has reiterated its Buy rating and $40.00 price target on CSX (NASDAQ:CSX), a $68.75 billion market cap railroad operator, following third-quarter results that exceeded expectations. According to InvestingPro data, the stock is trading near its 52-week high of $37.25, with a 31% return over the past six months.

CSX reported adjusted third-quarter earnings per share of $0.44, surpassing both Benchmark’s estimate and consensus forecasts, driven by higher-than-expected other revenue and strong operational performance. The company maintains strong profitability with a 46.1% gross margin and generates $14.12 billion in annual revenue.

The company is positioned for sequential margin improvement in the fourth quarter as both the Howard Street Tunnel and Blue Ridge projects are completing ahead of schedule, with favorable comparisons to last year when major hurricanes disrupted operations.

Looking toward 2026, CSX management projects a $100 million year-over-year benefit from the elimination of network distribution costs, while the company expects to expand its intermodal service offerings in the Northeast with double-stack clearance anticipated by the second quarter.

New CEO Steve Angel, who joined the company just weeks ago, emphasized his focus on making CSX best-in-class in multiple operational areas, improving franchise performance, and exploring strategic opportunities, including potential collaboration with other railroads to reduce system friction.

In other recent news, CSX Corporation reported its third-quarter earnings, surpassing analyst expectations with an earnings per share (EPS) of $0.44, compared to the forecasted $0.43. The company’s revenue was $3.59 billion, aligning with projections, despite a slight revenue decline and increased expenses. UBS raised its price target for CSX to $45 from $44, maintaining a Buy rating, following the company’s strong earnings performance. Jefferies also increased its price target to $42 from $40, citing a solid performance in what was considered the last challenging quarter for CSX, excluding $35 million in restructuring charges. RBC Capital maintained its $41 price target, highlighting a turnaround in operational performance as a positive factor. These developments indicate that CSX’s recent financial performance has been well-received by multiple analyst firms.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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