CSX stock price target raised to $45 from $44 at UBS on strong earnings

Investing.com - UBS raised its price target on CSX (NASDAQ:CSX) to $45.00 from $44.00 on Friday, while maintaining a Buy rating following the railroad operator’s third-quarter earnings report. The prominent ground transportation player, with a market capitalization of $67.1 billion, is currently trading near its InvestingPro Fair Value, suggesting balanced market pricing.

CSX reported earnings of $0.44 per share, exceeding the consensus estimate of $0.43 and UBS’s forecast of $0.42 per share. Excluding $35 million in severance and advisory costs, the company’s adjusted earnings were $0.45 per share. The company maintains strong profitability with a 46.9% gross margin and has demonstrated commitment to shareholder returns, having raised its dividend for 21 consecutive years. InvestingPro analysis reveals 10+ additional key insights about CSX’s financial health and market position.

The railroad’s total revenue performed approximately 0.7 percentage points better than UBS had forecast, with other revenue coming in $35 million higher than estimated, while freight revenue aligned with expectations. Operating expenses were about 0.4 percentage points lower than UBS had modeled. With trailing twelve-month revenue of $14.15 billion, CSX maintains its position as one of the industry’s largest players.

UBS noted several offsetting factors in the third quarter, including the $35 million in severance and advisory costs partially offset by $10 million in liquidated damages revenue. For the fourth quarter, the cost impact from the Blue Ridge subdivision and Howard Street tunnel will decrease from $25 million to $10 million.

UBS increased its fourth-quarter earnings per share estimate for CSX from $0.42 to $0.43, reflecting an operating ratio of 65.6%, while noting that fourth-quarter results will likely include a $10-$20 million sequential increase in incentive compensation and higher rental costs compared to the third quarter.

In other recent news, CSX Corporation reported its third-quarter 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $0.44 compared to the forecast of $0.43. Revenue for the quarter was reported at $3.59 billion, which aligned with market projections. Jefferies responded to these results by raising its price target for CSX to $42 from $40, maintaining a Buy rating, and highlighting a "solid beat" despite $35 million in one-off restructuring charges. RBC Capital also maintained its $41 price target and Outperform rating, noting a "clear turnaround in operational performance" as a positive factor. These developments reflect a period of positive momentum for CSX, as analysts recognize improvements in operational efficiency and financial performance.

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