UBS cuts CSX stock price target to $34, maintains Buy rating

On Thursday, UBS analyst Thomas Wadewitz revised the price target for CSX Corporation (NASDAQ:CSX) shares, adjusting it down to $34.00 from the previous target of $36.00. With the stock currently trading at $27.48, near its 52-week low of $26.22, and analysts setting targets between $27 and $38, the firm continues to recommend a Buy rating for the stock. According to InvestingPro data, 17 analysts have recently revised their earnings expectations downward for the upcoming period.

Wadewitz’s report acknowledged CSX’s positive performance in certain market segments, particularly in agriculture, fertilizers, and minerals. The analyst noted that these areas are experiencing solid demand, which is a favorable sign for the company’s business prospects.

The report also mentioned the potential for near-term support in coal utility volumes due to plant restocking. This factor could provide a temporary boost to CSX’s coal segment, which is often subject to fluctuations in demand and regulatory changes.

However, Wadewitz expressed caution regarding the uncertainties present in other parts of CSX’s business. The analyst pointed out risks associated with the intermodal, automotive, and chemicals sectors, which may be impacted by a weaker economic environment and tariff-driven uncertainties.

Despite these challenges, UBS’s maintained Buy rating suggests that the firm sees an overall positive outlook for CSX, with the lowered price target reflecting a more conservative valuation amidst the current economic climate. CSX’s ability to navigate through these mixed market conditions will continue to be a point of focus for investors and industry observers alike.

In other recent news, CSX Corporation reported a first-quarter earnings per share (EPS) of $0.34, which fell short of the consensus estimate of $0.37. The lower earnings were primarily due to disruptions from infrastructure projects and severe weather, leading to increased expenses and revenue losses. In response, CSX is working to improve network balance, although recovery may extend into the third quarter. Benchmark analysts maintained a Buy rating with a $35 target, while Stifel and Evercore ISI both reduced their price targets to $33, citing operational challenges but maintaining positive ratings. TD Cowen also lowered its price target to $31 and kept a Hold rating, emphasizing CSX’s struggle with margins and revenue decline. Raymond (NSE:RYMD) James adjusted its target to $33, highlighting the potential benefits of CSX’s strategic initiatives and leadership under CEO Hinrichs. Despite the setbacks, analysts remain optimistic about CSX’s long-term growth prospects, with expectations for improved performance in future quarters.

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