BMO Capital Markets Reiterates Outperform Rating, $27 PT on CSX Corporation on Positive Outlook

In a report published Wednesday, BMO Capital Markets reiterated its Outperform rating and $27.00 price target on CSX Corporation

. BMO Capital Markets noted, “At a transportation conference today, CSX provided an update on its various business segments through the first eight weeks of the year. Volumes are down about 2%, with declines in the coal and merchandise segments offset by strength in intermodal. On a quarter-to-date (QTD) basis, CSX Q1/13 revenues appear to be tracking about $50–60 million behind our forecast, which is equivalent to about $0.02/share off our previous $0.40 Q1/13 EPS forecast. We suspect that March should be somewhat better in terms of y/y performance but the quarter is still likely to fall short of current expectations (consensus of $0.41) in the absence of a positive surprise from the cost side. That being said, we believe the company's prospects should improve incrementally through the year as coal headwinds abate and as we project growth in the merchandise segment to improve.” CSX Corporation closed on Tuesday at $23.58.