Analyst Ken Hoexter from Bank of America Securities reiterated a Buy rating on CSX and keeping the price target at $41.00.
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Ken Hoexter has given his Buy rating due to a combination of factors pointing to future growth potential and strong fundamentals. CSX has shown year-over-year improvements in key areas, such as carload volumes and intermodal growth, despite some short-term challenges tied to industry-specific disruptions like production delays and derailments. Additionally, the completion of infrastructure projects like the Port Baltimore/Howard Street Tunnel is expected to significantly enhance CSX’s operational capabilities and lead to accelerated growth starting in 2026.
Moreover, the valuation for CSX remains attractive, with a price objective of $41 based on a 21.5x multiple of its projected 2026 earnings per share. This valuation aligns with historical ranges for rail companies and reflects confidence in management’s ability to improve efficiency and capitalize on emerging opportunities. Ken Hoexter’s outlook is further supported by the expectation of reduced one-time operational costs by 2026, paired with earnings growth of over 15% in that year, making CSX well-positioned for long-term performance.
According to TipRanks, Hoexter is a 3-star analyst with an average return of 2.3% and a 49.60% success rate. Hoexter covers the Industrials sector, focusing on stocks such as CSX, CH Robinson, and Canadian National Railway.
In another report released on December 9, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $41.00 price target.