CSX Sees Emerging Opportunity for Rails to Gain Share Versus Trucks, RBC Says

MT Newswires Live10-22 23:22

CSX (CSX) sees emerging opportunity for rails to gain share versus trucks, with the company seeing a 350 basis point margin improvement and not facing any undue cost pressure except fuel in Q3, RBC Capital Markets said in a Wednesday note.

Rails appear to be more insulated from cost pressures compared with trucking peers, as trucks face cost pressures due to labor and purchased transportation, according to the note.

The situation points to a relative valuation benefit for CSX that is currently not baked into the company's valuations, thus, signaling further upside for rail valuation on both an absolute and relative basis, RBC said.

RBC raised its 2026, 2027 and 2028 EPS estimates on CSX to $2.06, $2.35, and $2.57 from $2.00, $2.28, and $2.51, previously.

RBC adjusted the company's price target to $54 from $53 and maintained its outperform rating.

Price: 51.75, Change: +3.35, Percent Change: +6.91

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