CSX stock rating reiterated at Buy by UBS, price target at $41

Investing.com - UBS has reiterated its Buy rating on CSX (NASDAQ:CSX) with a price target of $41.00, according to a research note published Thursday. The railroad giant, with a market capitalization of $60 billion, is currently trading below its InvestingPro Fair Value, suggesting potential upside opportunity.

The railroad company’s stock has fallen 12% since August 19, while the S&P 500 gained 2% during the same period. UBS attributes part of this decline to Berkshire Hathaway’s indication that it is not interested in railroad acquisitions.

UBS believes CSX stock will now be driven by earnings performance, noting that its valuation of 17 times projected 2026 earnings is below the five-year average price-to-earnings ratio of 18. InvestingPro analysis reveals 12 additional key insights about CSX’s valuation and growth prospects, available exclusively to subscribers.

The firm sees potential growth support from CSX’s new service agreements with BNSF and significant service improvements following challenges in March and April of this year.

UBS also points to favorable year-over-year comparisons in 2026, as CSX will not face the $100 million in costs incurred from work on the Howard Street tunnel and Blue Ridge subdivision.

In other recent news, CSX Corp. has been the subject of multiple developments impacting investor perspectives. Notably, both Jefferies and TD Cowen have adjusted their price targets for CSX to $38, while maintaining a Buy rating on the company’s shares. Jefferies cited the elimination of a takeover premium as a reason for the adjustment, while TD Cowen’s revision followed indications that Berkshire Hathaway does not plan to acquire CSX. Additionally, President and CEO Joe Hinrichs is scheduled to speak at Morgan Stanley’s 13th Annual Laguna Conference in California. Furthermore, Hinrichs, along with Executive Vice President and CFO Sean Pelkey, will address J.P. Morgan’s U.S. All Stars Conference in London. Both events will be available via webcast on CSX’s investor relations website. These presentations are expected to provide further insights into the company’s strategic direction. Meanwhile, the White House has dismissed Surface Transportation Board member Robert Primus, citing a lack of alignment with President Trump’s agenda.

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