Deutsche Bank Downgrades CSX (CSX) to Hold, on Coal Hedwinds

October 18, 2012 7:12 AM EDT Send to a Friend
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Price: $30.91 +0.45%

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    5 Buy, 21 Hold, 0 Sell

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    Up: 3 | Down: 4 | New: 7
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Deutsche Bank downgraded CSX (NYSE: CSX) from Buy to Hold with a price target of $20.00 (from $25.00).

The firm comments, "We are downgrading shares of CSX to Hold (from Buy) as we now see a balanced risk/reward given coal headwinds (utility coal volumes are expected to continue to decline in H1 2013 and export volume comparisons are challenging given lower export thermal forward prices and weaker global economic growth forecasts). Despite expected core pricing gains and productivity improvements next year, we believe mix and coal headwinds will constrain earnings improvement as we are now modeling flat y/y EPS in 2013. As a result of these challenges, we have lowered our target P/E multiple to 11x, which implies a $20 PT using our 2013 EPS estimate of $1.78."

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 $21.19 yesterday.




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