CSX Corporation loses bull rating at TD Securities
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TD Securities cuts its rating on CSX Corp. (CSX -0.6%) to Hold from Buy after taking a more defensive position on the rails sector as a whole due to concerns on supply chain constraints and a lack of crew resources.
Analyst Cherilyn Radbourne and team are attracted to CSX's higher relative exposure to export coal, which they think has the potential to stay "stronger-for-longer" in an energy-constrained environment. In addition, the company's recent acquisitions of Quality Carriers and Pan Am are called smart extensions of the franchise as the industry pivots to more of a focus on growth vs. cost-driven operating ratio improvement.
However, concerns over upward pressure on CSX's (NASDAQ:CSX) operating ratio and the elevated cash balance are seen holding back the confidence level of investors. 
TD Securities assigned a one-year target price on CSX (CSX) of $38.00, which worked out to 19.0X the EPS estimate for the 12-month period ending on March 31, 2024.
See all the valuation metrics on CSX Corporation.