Morgan Stanley Believes CSX Might Be Getting Its Groove Back

In a report published Wednesday, Morgan Stanley analyst William J. Greene reiterated an Overweight rating and $31.00 price target on CSX CSX. In the report, Morgan Stanley noted, “As coal headwinds diminish, CSX appears favorably positioned to benefit from each of the key themes underpinning our broader rail thesis including: (1) Operating leverage to volume growth, (2) Continued pricing discipline, and (3) Productivity improvements, the combination of which leads us to believe CSX is an underappreciated margin story at an attractive valuation. Thus, we rate the shares OW.” CSX closed on Tuesday at $31.15.