Nomura Securities Starts CSX (CSX) at Buy

Nomura Securities initiates coverage on CSX (NYSE: CSX) with a Buy rating and a price target of $42.00.

Analyst Matt Troy commented, "CSX struggled operationally in 2014 in the wake of weather-related congestion, which overburdened a network under-resourced to accommodate traffic growth as operations normalized later in the year. Yet as coal has stabilized and intermodal investments drive traffic growth at higher incremental margins, we believe CSX is poised to begin to structurally narrow the gap between its operating ratio vs. industry peers as turnaround initiatives come to fruition in 2015. We see solid downside protection in the low $30 range, as recent acquisition interest by CP and the success of activism in the rail industry should support shares while compelling CSX to redouble its efforts in achieving a target mid-60% operating ratio on an accelerated basis. With a foundation in place and nascent momentum building into 2015, we initiate coverage with a Buy rating and $42 target price."

For an analyst ratings summary and ratings history on CSX click here. For more ratings news on CSX click here.

Shares of CSX closed at $36.20 yesterday.

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