Market Overview

CSX Shares Trading Higher as Bernstein Predicts Volume Increase from New Contracts

Share:
Related CSX
'Rail-mageddon' Nears, Warns Credit Suisse
Bank Of America: Demand Soft For Big Rail Carriers
PepsiCo Keeps The Dividend Climbing Despite Headwinds (Investor's Business Daily)

Shares of CSX (NYSE: CSX) are up nearly 2 percent Friday afternoon, potentially on the heels of a note from Bernstein analyst David Vernon suggesting the company could see "modestly" better-than-expected volume as a move toward adoption of fixed variable contracts draws nearer.

Vernon noted overall the contracts would lessen downside risk as the minimums earned through the new contracts offset revenue throughout the year. These minimums would hedge against profit declines if expected volumes fail to manifest.

Vernon also addressed the possibility of a potential coal rebound, stating a rebound in the commodity could remove some of the upside from moving to new contracts.

CSX continues to outperform the S&P 500 Rail Index, up 32 percent YTD against the 28.6 percent gain in the index.

Latest Ratings for CSX

DateFirmActionFromTo
Jul 2015CitigroupMaintainsBuy
Jun 2015SusquehannaMaintainsPositive
Jun 2015BarclaysMaintainsEqual-weight

View More Analyst Ratings for CSX
View the Latest Analyst Ratings

Posted-In: Analyst Color Commodities Markets Analyst Ratings

 

Related Articles (CSX)

Around the Web, We're Loving...

Get Benzinga's Newsletters