UPDATE: Stifel Upgrades CSX (CSX) to Buy

Stifel analyst Benjamin Nolan upgraded CSX (NASDAQ: CSX) from Hold to Buy with a price target of $37.00 (from $39.00).

The analyst comments "We are expecting CSX's total volume to be flat y/y in 2Q22, and up 6.3% sequentially. We anticipate 2Q22 reported carloads to be up 26.7% vs 2Q20 and 0.72% vs 2019, respectively. 2Q22 volume growth in Automotive (+7.7%), Agricultural & Food Products (+7.2%), and Chemicals (+2.5%) was virtually offset by weakness in Coal, Coke, and Iron Ore (10%), Minerals (12%), and Fertilizers (4%). We are modeling Intermodal volumes flat y/y in 2Q22. Terminal Dwell estimates for CSX are 11.7 hours, up 4.3% sequentially and 11.3% y/y while velocity is slated to be 15.4 mph, down 15.1% y/y and 3.9% sequentially. We are estimating $3.57 billion in 2Q22 revenue, which equates to roughly a 19.6% y/y revenue growth rate. We are projecting that CSX will report a 59% OR, which would entail an improvement of 340 bps sequentially, yet 330 bps worse from 2Q21. Our 2Q22 EPS estimate is $0.46, slightly below the FactSet consensus of $0.47."

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 $28.18 yesterday.

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