UPDATE: Bank Of America Reiterates On CSX On Confidence In Future

In a report published Wednesday, Bank of America analyst Ken Hoexter reiterated a Buy rating on CSX CSX, and raised the price target from $36.00 to $37.00. In the report, Bank of America noted, “CSX posted normalized 2Q14 EPS of $0.54, above our $0.53 and Street's $0.52 estimate. We believe these results will begin to ease some of the market's concern over CSX's ability to return to double-digit EPS growth in 2015 and eventually move to a mid-60's operating ratio. The company had an approx. 45% incremental margin when culling one-time costs this year and last (this quarter we excluded a $12 million Other net expense ($0.01/sh) due to environmental cleanup costs and income from real estate). If we exclude $32 million in 2Q costs from adverse weather and service issues, the company would be nearing 60%+ in incremental margins, which would help drive it toward its long-run margin target.” CSX closed on Tuesday at $31.15.