CSX is a top stock pick at Evercore ISI with earnings expected to shine
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CSX Corporation (NASDAQ:CSX) was included on Evercore ISI's monthly update of the firm's Best Core Ideas. The list is a compilation of Evercore's best longer-term stock picks.
CSX (CSX) is said to be approaching the point where it is finally "right -sizing" the labor force on the network to enabling the rails company to take advantage of still-favorable demand dynamics and a loosening of supply chain bottlenecks. Analyst Jonathan Chappell and team think the result for CSX could be accelerating volumes across nearly every product segment, with extra upside possible resulting from a return of base line auto production and robust global coal prices.
"With the most efficient network service of the major U.S. rails, CSX is positioned to take increasing share of the freight pie, while still ambitiously pricing to its service. With modest top-line and productivity gains forecasted for this year, the resulting free cash flow generation, coupled with a moderate capital expenditure budget and an already large cash stockpile, should enable CSX to maintain its recent accelerated pace of capital returns to shareholders, primarily in the form of its robust share repurchase program."
Evercore has a Buy rating on CSX and price target of $33.
Read the latest breakdowns on CSX from Seeking Alpha authors.