UPDATE: Stifel Downgrades CSX Corporation to Hold from Buy

In a report published Thursday, Stifel analyst John Larkin downgraded CSX Corporation

to Hold from Buy. According to the report, CSX reported 4Q13 EPS of $0.42, below the street consensus of $0.43. “Agricultural products volume grew 16% y/y as the year's harvest was not subjected to the drought conditions present in 2012,” the report noted. “Chemical (including crude by rail) volumes rose 18% y/y, while intermodal units, on the strength of increased highway conversions and stronger international traffic, climbed 11% y/y. On the disappointing side of the ledger, utility coal dropped 13% y/y as high stockpiles in the Southeast and relatively low natural gas prices persisted.” Some highlights from the report included: -4Q13 operating ratio rose, unfavorably, from 71.8% in the 4Q12 to 73.2% in the 4Q13. -The effective tax rate declined from 38.4% in the 4Q12 to 36.8% in the 4Q13 -Balance sheet improved slightly y/y CSX closed Wednesday at $29.23.