Bernstein Updates Rail View, Lifts CSX Price Target

CSX Corporation (NASDAQ:CSX) is included among the 14 Cheap DRIP Stocks to Buy Now.

Bernstein Updates Rail View, Lifts CSX Price Target

On March 31, Bernstein analyst David Vernon raised the firm’s price recommendation on CSX Corporation (NASDAQ:CSX) to $39 from $36. It maintained a Market Perform rating on the shares. The firm said it is updating its view on the rail sector as competition between transport modes and support from commodity trends continue to improve. At the same time, it noted that railroads are not insulated from broader macro risks tied to the Iran conflict. Even so, Bernstein argued that if a severe recession remains a tail risk rather than a base case, there is a case for increasing exposure to rail stocks.

A few days earlier, on March 26, RBC Capital Markets raised its price goal on CSX to $43 from $39 and maintained an Outperform rating. The update came as part of a broader preview of Q1 results for Class I railroads. The firm said it is assigning higher valuation multiples to the stock, pointing to signs that the freight environment is starting to improve.

CSX Corporation (NASDAQ:CSX) provides transportation services, including rail, intermodal, and rail-to-truck transload solutions. It serves a range of markets such as energy, industrial, construction, agriculture, and consumer products.

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