CSX (CSX) PT Lowered to $44 at UBS

UBS analyst Thomas Wadewitz lowered the price target on CSX (NASDAQ: CSX) to $44.00 (from $46.00) while maintaining a Buy rating.

The analyst commented, "CSX reported 1Q EPS of $0.46/share which was modestly above our estimate of $0.44/share and Consensus of $0.45. Relative to our model, the upside was due to revenue 0.7pp and cost side 0.5 pp better than our assumptions. CSX showed improvement in the Purchased Services and Other (PS&O) expense line which was $23 mm lower y/y excluding the insurance gain in the prior year quarter. We expect a positive response to the solid 1Q report."

"CSX is trading at a P/E of 17x on our rolling forward estimated EPS. We believe a combination of solid volumes and expected margin improvement in 2H provide support for the stock. We are maintaining our 2024E EPS and modestly lowering our 2025E EPS. We continue to apply a 20x P/E to our 2025E EPS which is now $2.19 /share (prior $2.30) to derive our price target of $44 (vs $46 prior). We rate CSX Buy."

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