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Investing.com - Jefferies lowered its price target on CSX (NASDAQ:CSX) stock to $38.00 from $40.00 on Tuesday, while maintaining a Buy rating on the railroad operator’s shares. The stock, currently trading at $32.17, sits between its 52-week range of $26.22 to $37.25, with a market capitalization of nearly $60 billion.
The price target reduction comes as Jefferies noted that the recent pullback in CSX’s stock has eliminated the takeover premium that had previously been priced into the shares.
Despite the lower target, Jefferies highlighted that CSX’s operating performance is showing strong improvement, with service metrics including dwell times, train velocity, and trip plan compliance reaching near multi-year best levels.
The firm expects network disruptions to subside by the fourth quarter of 2025, positioning CSX for above-peer margin expansion and earnings growth as the company moves into 2026.
Jefferies maintained its Buy rating on CSX stock, noting that shares are currently trading at what it considers an attractive valuation following the recent price decline.
In other recent news, CSX Corporation has been the focus of multiple developments affecting its operations and investor outlook. Activist investor Ancora Holdings Group has urged CSX to explore merger options, following the combination of Union Pacific and Norfolk Southern. Ancora criticized CSX’s operational performance and called for the company to hire an investment bank to consider merger possibilities. Meanwhile, TD Cowen has lowered its price target for CSX to $38 from $45, maintaining a Buy rating, following Berkshire Hathaway’s decision not to pursue an acquisition of the railroad operator. Warren Buffett confirmed that Berkshire Hathaway is not interested in acquiring any train companies, including CSX.
Additionally, CSX, in partnership with BNSF, has launched new intermodal services across the United States, aiming to provide coast-to-coast shipping solutions. These services include routes connecting Southern California with Charlotte, North Carolina, and Jacksonville, Florida, as well as Phoenix, Arizona with Atlanta, Georgia. This initiative is intended to convert over-the-road freight to rail transportation. In other developments, the White House has removed Robert Primus from his position on the Surface Transportation Board, citing misalignment with the Trump administration’s agenda. These recent events highlight the dynamic landscape CSX is navigating amid industry shifts and investor actions.
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