BMO Capital Markets Maintains Outperform, $28 PT on CSX Corporation

BMO Capital Markets reiterates its Outperform rating and $28 price target on CSX Corporation

as the company posts softer than expected 4Q11 results as well as unexpected changes in senior management. BMO Capital Markets notes, "CSX reiterated its target 65% operating ratio by no later than 2015 and revealed unexpected changes in its senior management team. CSX's CFO, Oscar Munoz takes on the COO post, replacing David Brown who is no longer with the company. Fredrik Eliasson replaces Oscar as the CFO. Fredrik is a 16-year veteran CSX executive and his appointment is less controversial, in our opinion, than Oscar taking on the COO position. While Oscar has proven to be a very effective CFO and a key leader at CSX over the past nine years, his skills as an operations chief are untested." CSX closed at $22.69 a share yesterday.