UPDATE: BMO Capital Markets Reiterates Outperform Rating, Raises PT on CSX Corporation
In a report published Wednesday, BMO Capital Markets reiterated its Outperform rating on CSX Corporation (NYSE: CSX), and slightly raised its price target from $26.00 to $27.00.
BMO Capital Markets noted, “CSX expects coal freight rates to be largely flat y/y in 2013; export coal of ~40Mt; and domestic coal to decline in the range of 5–10%. This guidance is slightly better than what we had been anticipating, particularly in terms of the coal freight rate, and supports the modest upward revision to our EPS forecast. Management projects $130M in cost savings in 2013, which will serve to partially offset several cost headwinds, including higher wage rates, incentive comps and lower gains on real estate. Outside of coal, the company enjoys ample capacity to grow at low incremental costs and the outlook is fairly positive for coal and merchandise with energy-related markets expected to continue to pick up momentum over the coming quarters.”
CSX Corporation closed on Tuesday at $20.81.
Latest Ratings for CSX
|Feb 2015||BMO Capital||Upgrades||Market Perform||Outperform|
|Feb 2015||JP Morgan||Initiates Coverage on||Overweight|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.