Highly Anticipated Rail Report Draws Reaction from Analysts and Investors (CSX)

October 17, 2012 11:08 AM EDT
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In case you missed it, after the close of trading yesterday investors were treated to the most anticipated rail report of the season. Of course this is a reference to CSX Corp’s (NYSE: CSX) thrilling third quarter earnings report. The report showed CSX beat EPS estimates by a penny, though revenue was light.

"Apart from being first among Norfolk Southern (NYSE: NSC) and Union Pacific (NYSE: UNP) to report, CSX's report was highly anticipated given NSC's recent guide down and the market's focus on coal (with recent attention shifting from domestic thermal to export met) and its impact on the rails," said analyst Peter Nesvold, of Jefferies.

Overall the report continues to underscore the resiliency and flexibility of the rails, thinks Nesvold.

"Bears will inevitably find something to grumble about, but at the end of the day, CSX continues to effectively reallocate resources in response to changes in demand," he said, adding that "The rails appear to be coming out of a nuclear winter largely intact — passing stress tests that few other industries could survive and underscoring the resilience of these businesses."

Jefferies has a Buy rating on CSX (NYSE: CSX) and a price target of $28.00.

For an analyst ratings summary and ratings history on CSX click here. For more ratings news on CSX click here.

Shares of CSX closed at $21.63 yesterday.

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