CSX Shares Recovering Following Q4 Results; Analysts React

CSX Corporation (NASDAQ: CSX) shares are recovering on Thursday following Q4 results. The company fell to its lowest price in nearly three years, with the demand for rail cargo expected to fall this year. Here is how analysts are currently reacting.

Macquarie: Neutral Rating, PT Of $24

Macquarie maintains a Neutral rating with an adjusted price target falling to $24 from $26.

Analysts at Macquarie view CSX as having "just a little more time," believing that the impact is coming from factors such as coal, which is "worse than expected in 6, which should be the worst of times."

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"We think most of the bad news is priced in and see a return to double-digit EPS growth in F17 after an estimated double-digit drop in F16," the firm commented.

Buckingham Research Group: Buy Rating, PT Of $31

The Buckingham Research Group maintained a Buy rating for CSX with a PT of $31.

"We believe that investors should keep that in mind with respect to the company's guidance of down EPS in 2016, perhaps this will set the bar low enough in terms of expectations. Coal, Crude and Metals traffic will continue to weigh on top line progress, but will moderate after 1Q16," the firm's report stated.

Deutsche Bank: Hold Rating, PT Of $27

Deutsche Bank issued a Hold rating for CSX with a price target of $27.00 on Thursday.

The firm noted declines in coal and merchandise volumes since Q2 2015. The company expects core pricing gains to outpace rail inflation. Pricing of 4.1 percent in Q4 2015 has also declined, as service still improves across the network.

"Export coal pricing adjustments were a modest headwind to core pricing last quarter," the firm commented.

Credit Suisse: Outperform Rating, PT Of $25

Credit Suisse issued an Outperform rating with a lowered PT of $25 for CSX on Wednesday.

The firm expects the company's 2016 earnings to be down. "In short, expectations for solid pricing and ~$200 million of productivity gains will not be able to overcome burgeoning coal stockpiles, low gas prices, broad commodities weakness and the strong dollar," the firm noted.

Stifel: Buy Rating

Stifel issued a Buy rating on CSX Tuesday, citing 4Q15 GAAP EPS $0.02 above the street, however coal and strong USD still remain as headwinds.

"Actual FY 2015 EPS growth was up 4.2 percent y/y. FY 2016 earnings per share are expected to be down y/y compared to FY 2015 EPS of $2.00 due to continued low commodity prices, the strong U.S. dollar, and the energy market transition," the firm noted.

While the newest report does not highlight a price target, the firm issued a buy rating with a PT of $33 earlier in the week on January 11.

Bernstein: Market-Perform Rating, PT Of $26

Bernstein maintained a Market-Perform rating on CSX, lowering their PT to $26.

"We have only modest confidence in our forward estimate, and we think the buy-side investors share this uncertainty due to issues around coal, energy, exports, and whether the consumer economy follows industrials into recession," Bernstein commented.

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