UPDATE: Seaport Global Securities Starts CSX (CSX) at Neutral

October 19, 2016 7:42 AM EDT
Get Alerts CSX Hot Sheet
Price: $36.48 -0.38%

Rating Summary:
    16 Buy, 17 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 11 | Down: 31 | New: 42
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(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.

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 $31.02 yesterday.



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