BofA Upgrades CSX to Buy and Raises Price Target

CSX Corporation (NASDAQ:CSX) is one of the 12 Best Logistics Stocks to Buy According to Hedge Funds. On July 17, BofA Securities upgraded CSX Corporation (NASDAQ:CSX) from “Neutral” to “Buy” and increased its price target from $34 to $42.

According to BofA Securities, this decision reflects increased chances for mergers and acquisitions among US railroad companies. The research firm believes this could drive higher valuations for companies like CSX Corporation (NASDAQ:CSX).

BofA Upgrades CSX to Buy and Raises Price Target

A freight train moving through a rural landscape, its engine and numerous rail cars carrying the company’s cargo.

The increased target price of $42 is based on a valuation of 21.5 times BofA’s earnings estimate for CSX Corporation (NASDAQ:CSX) in 2026, up from the previous multiple of 20.5 times for the firm’s 2025 forecast.

BofA Securities also pointed out that CSX Corporation (NASDAQ:CSX) has made internal service improvements, which was another factor warranting a valuation reassessment of the company.

CSX Corporation (NASDAQ:CSX) is one of the largest suppliers of rail-based freight transportation in North America. The company offers traditional rail service and the transport of intermodal containers and trailers.

While we acknowledge the potential of CSX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CSX and that has a 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.