Odds Of Hunter Harrison/Mantle Ridge Making A Successful Assault On CSX Have Increased
CSX Corporation (NASDAQ: CSX) was initially expected to “put up more of a fight” against activism, and the probability of Hunter Harrison/Mantle Ridge making a successful assault on the company has increased, Aegis Capital’s Jeffrey Kauffman said in a report.
Kauffman maintains a Hold rating on the company, while raising the price target to $50.
What Is Different This Time?
Hunter had approached CSX twice in the past — in 2014 and 2015 — but had been rejected. Kauffman noted that the previous moves involved merger discussions between Canadian Pacific Railway Limited (USA) (NYSE: CP) and CSX, while the current approach involves only a management change.
“While we still believe the endgame here is to effect a combination between CSX and CP, we get the sense that because of the lack of a staggered Board of Directors, CSX would face a difficult road ahead if Mantle Ridge was to offer a new candidate list by the February 10th deadline, and we believe that the two sides are already in discussions,” the analyst commented.
Latest Ratings for CSX
|Mar 2017||Atlantic Equities||Upgrades||Neutral||Overweight|
|Feb 2017||Deutsche Bank||Upgrades||Hold||Buy|
|Feb 2017||Avondale Partners||Upgrades||Market Outperform|
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