CSX price target raised to $39 from $36 at Bernstein

Bernstein analyst David Vernon raised the firm’s price target on CSX (CSX) to $39 from $36 and keeps a Market Perform rating on the shares. The firm is updating its rail sector thesis as modal competition and commodity tailwinds continue to improve for the sector. The railroads are in no way immune to macro risk that could flow from the Iran conflict, but in a world where a severe recession remains a tail risk there is a case that can be made for increasing rail exposure, Bernstein argues.