Bank of America is growing on CSX amid solid railroad operating performance


CSX Corporation (NASDAQ: CSX ) is among them 14 Best American Stocks to Invest in.

Bank of America is growing on CSX amid solid railroad operating performance
Bank of America is growing on CSX amid solid railroad operating performance

On March 4, Bank of America raised its price target on CSX Corporation (NASDAQ: CSX ) from $41 to $48. It reiterated a buy rating on the shares. The company said it is updating price targets on transportation and railroad stocks under its coverage. Operating activity across the sector remains steady, and analysts see several indicators that suggest potential resilience in the industrial economy.

During the company’s Q4 2025 earnings call, CEO Stephen Engel said the company expects low-single-digit revenue growth this year. The outlook assumes flat industrial production, modest GDP growth, and oil and benchmark coal prices remaining close to current levels. Angel also said operating margins could widen by about 200 to 300 basis points in 2026.

He explained that the expected improvements will come from workforce optimization efforts, tighter cost controls, and gains in network efficiency. The company plans to maintain capital expenditures of $2.4B in 2026. Angel described the level as a significant decrease from the previous year. Most of the costs will go to safety, reliability, and a limited number of development projects. He also noted that free cash flow may increase by at least 50% over 2025. Engel said the company is moving away from multi-year targets and will only provide guidance for 2026. He explained that the decision reflects changing macroeconomic conditions and changes in the industry.

CSX Corporation (NASDAQ: CSX ) provides rail, intermodal, and rail-to-truck transportation services. Its network supports customers across multiple industries, including energy, industrial, construction, agriculture and consumer products.

While we accept CSX’s potential as an investment, we believe some AI stocks offer higher potential and lower risk. If you’re looking for the most undervalued AI stocks that stand to benefit significantly from Trump-era tariffs and the offshore trend, check out our free report Best short-term AI stocks.

Read more: The 40 Most Popular Stocks Among Hedge Funds Running in 2026 and 14 Stocks on the Verge of Becoming Dividend Aristocrats

Disclosure: None. Follow the inside port on Google News.

Add Comment