Market Overview

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

Share:
Related CSX
Watch These 5 Huge Put Purchases In Tuesday Trade
CSX The Only Rail Worth Riding? Deutsche Bank Downgrades, Turns Neutral On The Rest
CSX Corporation Announces —…–7 Analyst and Investor Conference (GuruFocus)

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
Apr 2017Raymond JamesUpgradesMarket PerformOutperform
Mar 2017Atlantic EquitiesUpgradesNeutralOverweight
Feb 2017Deutsche BankUpgradesHoldBuy

View More Analyst Ratings for CSX
View the Latest Analyst Ratings

Posted-In: Analyst Color Commodities Markets Analyst Ratings

 

Related Articles (CSX)

View Comments and Join the Discussion!