UPDATE: Credit Suisse Downgrades CSX Corporation to Neutral on Downside Risk
Credit Suisse downgraded CSX Corporation (NYSE: CSX) from Outperform to Neutral and lowered the price target from $26.00 to $22.00.
Credit Suisse commented, "While we are less constructive on the Eastern rails in general (relative to the Western rails), we believe that shares of CSX are exposed to more potential downside risk than Norfolk Southern. … Market not Fully Discounting Export Coal Pricing Cuts: With the stock trading north of 11 times 2013 consensus (the high end of its 6-month range), we are concerned that CSX could be vulnerable to downward estimate revisions. And while coal volume declines are well known, price reductions in the export coal business may not be fully appreciated."
CSX Corporation closed at $20.89 on Thursday.
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Tags: Credit Suisse