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

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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
May 2016CLSAInitiates Coverage onUnderperform
Mar 2016ScotiabankInitiates Coverage onSector Perform
Feb 2016Morgan StanleyDowngradesOverweightUnderweight

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