CSX (CSX) PT Lowered to $40 at Citi

Citi analyst Ariel Rosa lowered the price target on CSX (NASDAQ: CSX) to $40.00 (from $44.00) while maintaining a Buy rating.

The analyst comments "CSX (CSX) remains our top pick among the rails, despite its well telegraphed 1H25 challenges as it repairs its network from hurricane damage in recent months. With labor negotiations largely resolved, the railroad is well-positioned to focus on its core operations. By mid-2025, we believe investor attention is likely to shift to the potential acceleration in the company’s 2026 earnings growth. At this point, we expect investors to realize that the stock appears very reasonably priced at only 14.5x current Street consensus 2026 EPS of $2.23. Given its historical trading range of 15x-20x forward earnings, we believe a move into the upper-$30 range at some point in 2025 is highly likely, implying at least a mid-teens return for investors with what we believe is relatively limited downside risk."

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