BMO Capital analyst Fadi Chamoun downgraded CSX (CSX) to Market Perform from Outperform with an unchanged price target of $38. The firm sees “significant uncertainty” around a takeover deal involving CSX. With the stock up 20% since deal speculation began, CSX’s risk/reward profile is more balanced, the analyst tells investors in a research note. BMO believes CSX’s best takeover scenario is a merger with BNSF, but sees only 6% of relative share outperformance from current levels in such a scenario.
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