UPDATE: Seaport Global Securities Starts CSX (CSX) at Neutral
- The FTC Confirms Antitrust Charges Against Qualcomm (QCOM) for Monopolizing Semiconductor Device Used in Cell Phones
- Target (TGT) November/December Comps Fell 1.3%; Lowers Guidance
- US Drone Market Could Reach 6 Million By 2019 - Oppenheimer
- Eli Lilly (LLY) to Acquire CoLucid Pharmaceuticals (CLCD) for $960M
- United Airlines (UAL) Tops Q4 EPS by 5c
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
(Updated - October 19, 2016 9:31 AM EDT)
Seaport Global Securities initiated coverage on CSX (NASDAQ: CSX) with a Neutral rating and a price target of $31. Analyst Mark A. Levin said he would wait for a pullback.
"We assume the shares trade to ~16x our 2017 EPS estimate of $1.95/share. Historically, CSX has traded at an average forward multiple of 12.9x, as high as 17.5x, and as low as 5.9x. We assume a higher-than-average target multiple for several reasons, including the likelihood of improving volumes, particularly in the higher-margin coal segment. Moreover, after several years of aggressive cost-cutting, CSX's incremental margins should be very strong as demand returns. Even so, we would wait for a pullback before initiating position," said Levin.
Shares of CSX closed at $31.02 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Deutsche Bank Starts Bio-Rad Labs (BIO) at Hold
- Citi Starts DCP Midstream Partners (DPM) at Neutral, Says Upside Is "Modest"
- UBS Downgrades Dynegy (DYN) to Sell
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, New Coverage
Sign 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!