TD Cowen analyst Jason Seidl reiterated a Hold rating on CSX (CSX – Research Report) today and set a price target of $31.00.
Jason Seidl has given his Hold rating due to a combination of factors impacting CSX’s performance. The company reported first-quarter earnings per share that fell short of both his and the market’s expectations, with operational challenges leading to a significant miss in operating ratio estimates. The revenue decline, coupled with increased expenses, reflects the broader macroeconomic uncertainties that CSX is currently navigating.
Despite these challenges, there are signs of potential recovery. CSX is undertaking efforts to improve network efficiency, such as reducing cars online and adding locomotives to congested areas, which are expected to gradually enhance performance without incurring substantial additional costs. While core demand remains stable, and there are positive indicators in domestic demand and improved natural gas prices, the outlook remains cautious. These mixed signals contribute to the decision to maintain a Hold rating, as the company works through its operational hurdles.
In another report released today, Bank of America Securities also reiterated a Hold rating on the stock with a $30.00 price target.
Based on the recent corporate insider activity of 51 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CSX in relation to earlier this year.