Susquehanna downgrades CSX to Neutral on share outperformance

Susquehanna downgraded CSX (CSX) to Neutral from Positive with an unchanged price target of $35. The firm believes the relative outperformance of CSX versus Union Pacific (UNP) since mid-April and the narrowing of the “long-held valuation gap” shifts the relative risk/reward among U.S. rails. As a result, the firm upgraded Union Pacific to Positive and downgraded CSX to Neutral. Susquehanna says macro uncertainty remains high and pressure is “ratcheting up for some markets,” like Eastern export coal as seaborne met prices continue to weaken.