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Investing.com - Evercore ISI raised its price target on CSX (NASDAQ:CSX) to $39.00 from $35.00 on Thursday, while maintaining an Outperform rating on the railroad operator’s stock. The new target represents potential upside from the current price of $34.97, with the stock trading near its 52-week high of $37.10. According to InvestingPro data, CSX maintains a FAIR financial health score, supported by strong profitability metrics.
The price target increase follows CSX’s second-quarter 2025 earnings report, which showed earnings per share of $0.44, exceeding both Evercore’s estimate and the average Street forecast of $0.42. The company has demonstrated consistent profitability, with trailing twelve-month revenue of $14.28 billion and a healthy gross profit margin of 47.5%.
While revenue was essentially in line with projections, with Other Revenue compensating for a modest Freight revenue shortfall, the company achieved a significant 170-basis-point margin improvement as its network and service normalized following weather disruptions in the first quarter.
Evercore raised its full-year 2025 EPS estimate for CSX to $1.67 from $1.62, while maintaining its 2026 forecast at $1.95. The firm noted that CSX’s main network projects remain on track for completion in the fourth quarter of 2025.
The higher price target also reflects increased speculation about potential rail industry consolidation, with Eastern rail operators widely viewed as acquisition targets, according to the research firm.
In other recent news, CSX Corporation reported its second-quarter 2025 earnings, showcasing a mixed financial outcome. The company achieved an earnings per share (EPS) of $0.44, which exceeded analyst expectations of $0.42, representing a 4.76% surprise. However, CSX’s revenue slightly missed projections, coming in at $3.57 billion compared to the anticipated $3.58 billion, a 0.28% shortfall. In a separate development, Barclays (LON:BARC) adjusted its price target for CSX, raising it to $38 from $36 while maintaining an Overweight rating. This adjustment indicates Barclays’ continued confidence in CSX’s financial performance and market position. These recent developments provide investors with insights into the company’s current financial health and market perceptions.
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