UBS Remains Sidelined on CSX Corp. (CSX) Following 2Q Call - PT to $31
UBS reiterated a Neutral rating on CSX Corp. (NASDAQ: CSX), and raised the price target to $31.00 (from $27.00), following the company's 2Q conference call. The combination of an upside 2Q earnings report and better than anticipated cost performance from CSX may set a high bar for the other rails. CSX pointed to incremental interest at several utility plants to take more coal but they also indicated that stockpiles remain at very high levels at a number of plants.
Analyst Thomas Wadewitz commented, "CSX's 2Q conference call was upbeat as they pointed to a full pipeline of cost side opportunities and the increase in their 2016 productivity target from $250 mm to $350 mm points to solid gains in 2H16 despite more difficult comps. CSX faces a headwind from $25 mm - $30 mm in higher incentive compensation costs in 3Q but we expect them to continue delivering efficiency gains."
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 $29.05 yesterday.