CSX Corporation gains after Morgan Stanley upgrades to Equal-weight
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Morgan Stanley turned more constructive on CSX Corporation (NASDAQ:CSX) on Tuesday with an upgrade to an Equal-weight rating from Underweight.
Analyst Rani Shanker noted 2023 is a fresh chapter for CSX with a new CEO at the helm who will be hoping that the pivot to growth which CSX has been trying to achieve for the last two years finally comes through.
"Like other US Rail peers, tough comps on coal, truck competition, muted auto growth as well as headwinds on accessorials and cost inflation put OR at risk in 2023."
Despite the cautious outlook, Shanker and team see valuation on CSX at fair value after the recent share price underperformance.
Morgan Stanley assigned a price target of $24 to CSX.
The Seeking Alpha Quant Rating on CSX is at Hold with low marks for growth and valuation offsetting a high grade for profitability.
Shares of CSX pushed up 1.25% in premarket trading to $30.22.