23 Aug

Do Analysts Favor CSX over Other Railroad Companies?

WRITTEN BY Samuel Prince

Analysts’ recommendations

The 26 analysts that track CSX (CSX) have given it a consensus rating of 2.12, which indicates a “buy.” The company’s closing stock price on August 22 exceeded the 12-month target price of $73.41 set by analysts. Seven analysts have a “strong buy” recommendation on CSX stock, ten have a “buy” recommendation, eight have a “hold” recommendation, and one has a “sell” recommendation.

Do Analysts Favor CSX over Other Railroad Companies?

Analysts’ recommendations for peers

Norfolk Southern (NSC), a prime competitor of CSX, has a consensus rating of 2.42, reflecting a “buy.” Western US rail giant Union Pacific (UNP) has a mean rating of 2.29, which indicates a “buy.” The smallest Class I railroad, Kansas City Southern (KSU), has a consensus rating of 2.28, reflecting a “buy.”

Canada’s largest freight rail, Canadian National Railway (CNI), has a mean rating of 2.62, indicating a “hold.” Its competitor, Canadian Pacific Railway (CP) has a consensus rating of 2.02, reflecting a “buy.” The US’s largest short-line rail carrier (XTN), Genesee & Wyoming (GWR), has a mean rating of 2.21, indicating a “buy.”

CSX continues to attract analysts

Analysts have had their eyes on CSX since the railroad started on its operational turnaround journey. The substantial expansion in its operating margin coupled with price gains has boosted analyst confidence in the stock. With the new operating management structure in place, the company further expects to drive operating efficiency, which explains why CSX remains analysts’ favorite among the major railroads.

In the last part, we’ll see how CSX’s valuation stacks up among peers.

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