JPMorgan believes Friday’s news that CSX (CSX) and BNSF created new intermodal services likely lower market expectations of BNSF making a bid for CSX “until proven otherwise.” Shares of CSX closed Friday down 4% to $34.58. However, after speaking with CSX, JPMorgan says these new services had been under development for several quarters and the company believes they will provide a material volume benefit in the near future. The offerings were in the works well before the recent acquisition or activist headlines, the analyst tells investors in a research note.
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