UPDATE: Deutsche Bank Lowers PT to $26 on CSX Corporation on Moderating Core Pricing
Deutsche Bank reiterated its Buy rating on CSX Corporation (NYSE: CSX) but reduced its price target on shares from $27 to $26.
Deutsche Bank noted, "Tuesday after the close, CSX reported Q1 EPS of $0.49/share, a penny above our estimate. CSX improved its OR 64bps y/y to 68.7% as the company enhanced network fluidity producing productivity tailwinds. Core pricing gains and export coal growth (up 41% y/y) aided Q2 EPS though SSS pricing improvement decelerated to up 3-4% y/y (ex the met coal tariff reductions) versus up 5-6% y/y in Q1. Although we were disappointed to see core pricing moderate, CSX continues to drive above-inflation pricing and is poised to drive margin expansion in H2 as it benefits from easy comparisons from network congestion and underwhelming operating performance last year."
CSX Corporation closed at $22.63 on Wednesday.
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