Credit Suisse Raises Price Target on CSX (CSX), New Target Offers 25% Upside
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Price: $50.16 +0.04%
Rating Summary:
24 Buy, 15 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
24 Buy, 15 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Credit Suisse is reiterating its Outperform rating on shares of CSX (NYSE: CSX) and is raising its price target from $91 to $94.
The firm attended that company's analyst meeting on May 17 and 18 in Detroit and notes that while the emphasis has changed somewhat over the past few years, the fundamentals of CSX's business remain very strong.
Credit Suisse states that coal demand remains robust, inter-modal is growing rapidly, pricing remains inviolate, and there is still significant room for further productivity gains. The firm is raising its FY11 EPS estimate from $5.16 to $5.21 and is FY12 and FY13 estimates from $5.93 and $6.65 to $6.26 and $7.18.
During the conference the company reported that it sees EBIT growth of 12% to 14% over the next 5 years, which is in line with its target of an operating ratio of 65% by 2015. Added with consistent buy-backs, EPS growth should average 18% to 20%.
Credit Suisse comments, "on our math, CSX only has to achieve 2% to 3% volume growth and 3% to 4% pricing growth to hit these targets, both of which will likely prove conservative."
For more ratings news on CSX click here and for the rating history of CSX click here.
Shares of CSX closed at $75.44 yesterday.
The firm attended that company's analyst meeting on May 17 and 18 in Detroit and notes that while the emphasis has changed somewhat over the past few years, the fundamentals of CSX's business remain very strong.
Credit Suisse states that coal demand remains robust, inter-modal is growing rapidly, pricing remains inviolate, and there is still significant room for further productivity gains. The firm is raising its FY11 EPS estimate from $5.16 to $5.21 and is FY12 and FY13 estimates from $5.93 and $6.65 to $6.26 and $7.18.
During the conference the company reported that it sees EBIT growth of 12% to 14% over the next 5 years, which is in line with its target of an operating ratio of 65% by 2015. Added with consistent buy-backs, EPS growth should average 18% to 20%.
Credit Suisse comments, "on our math, CSX only has to achieve 2% to 3% volume growth and 3% to 4% pricing growth to hit these targets, both of which will likely prove conservative."
For more ratings news on CSX click here and for the rating history of CSX click here.
Shares of CSX closed at $75.44 yesterday.
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