JPMorgan Raises CSX Target While Citi Downgrades on Valuation Concerns

CSX Corporation (NASDAQ:CSX) is included among the 13 NASDAQ Stocks with Highest Dividends.

On April 7, JPMorgan raised the firm’s price recommendation on CSX Corporation (NASDAQ:CSX) to $42 from $41. It reiterated an Overweight rating on the shares. The firm made the change as part of its Q1 preview for the transportation and logistics group. It noted that surface transportation rates are unlikely to revisit last year’s lows. The analyst also said the firm sees “more stocks to own than avoid” heading into earnings. At the same time, it pointed out that it is still too early to expect positive earnings revisions, as more stable freight demand has yet to show up.

On April 7, Citi analyst Ariel Rosa downgraded CSX Corporation to Neutral from Buy, while raising the price target to $44 from $41. The firm said it has narrowed its ratings, noting that many stocks in its North America transportation coverage “appear expensive” without meaningful upward revisions to estimates. It added that, in many cases, such revisions “feel premature given macro uncertainty.” It also highlighted that Eastern railroads are trading at “a rare premium” compared to Class 1 peers. The firm made broader target adjustments across the group as part of its Q1 preview.

CSX Corporation (NASDAQ:CSX) is a transportation company. It provides rail, intermodal, and rail-to-truck transload services to customers across a wide range of markets, including energy, industrial, construction, agricultural, and consumer products.

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