UBS Maintains a 'Buy' on CSX (CSX); The Money Train is Leaving the Station
Tweet
Share
E-mailGet Alerts CSX Hot Sheet
Price: $34.39 +0.67%
Rating Summary:
22 Buy, 16 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
Rating Summary:
22 Buy, 16 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
Join SI Premium – FREE
UBS maintains a 'Buy' on CSX (NYSE: CSX) price target raised $1 to $31.00.
UBS analyst says, "Market has CSX mispriced, in our view - CSX’s relative valuation to its peer group tends to be cyclical, with higher highs and lower lows, but the current 20% 2012 P/E discount to its comps looks absurd to us. Add the facts that CSX has stronger and more consistent pricing, the best management track record over the last seven years, and the most aggressive margin targets, and the result looks like a compelling opportunity on both a relative and absolute basis."
"Another interesting fact is that CSX is the large cap railroad the sell side has most consistently got wrong with regard to underestimating earnings power. We expect more of the same going forward, which allows management to continue to clear a low bar—particularly with regard to skepticism surrounding the 65% operating ratio target by 2015. At some point consensus needs to reflect this likelihood, which should go a long way towards eliminating the valuation discount to its peers."
For more ratings news on CSX click here and for the rating history of CSX click here.
Shares of CSX closed at $20.21 yesterday.
UBS analyst says, "Market has CSX mispriced, in our view - CSX’s relative valuation to its peer group tends to be cyclical, with higher highs and lower lows, but the current 20% 2012 P/E discount to its comps looks absurd to us. Add the facts that CSX has stronger and more consistent pricing, the best management track record over the last seven years, and the most aggressive margin targets, and the result looks like a compelling opportunity on both a relative and absolute basis."
"Another interesting fact is that CSX is the large cap railroad the sell side has most consistently got wrong with regard to underestimating earnings power. We expect more of the same going forward, which allows management to continue to clear a low bar—particularly with regard to skepticism surrounding the 65% operating ratio target by 2015. At some point consensus needs to reflect this likelihood, which should go a long way towards eliminating the valuation discount to its peers."
For more ratings news on CSX click here and for the rating history of CSX click here.
Shares of CSX closed at $20.21 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- CSX (CSX) PT Lowered to $38 at Jefferies
- Community West Bancshares (CWBC) Tops Q1 EPS by 7c
- Cleveland Research Upgrades Dynatrace Inc. (DT) to Buy, 'optimism underlying fundamentals are likely to support upside'
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
UBS, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
