Goldman Sachs downgraded CSX Corporation (CSX) to “Neutral” on Thursday as the analyst see better opportunities in the transportation sector.
The analysts downgraded CSX from “Buy” to “Neutral” to with a price target of $23. This target is a +12% upside to Wednesday’s closing price of $20.54.
“We think the Eastern rails are likely to post the weakest yoy earnings growth in the transport space in 1H13 on soft export coal fundamentals and only modest traffic growth ex-coal,” Goldman Sachs noted.
CSX shares were down 29 cents, or -1.41%, during premarket trading on Thursday. The stock is down -9.48% over the past year.
The Bottom Line
Shares of CSX Corporation (CSX) have a 2.73% dividend yield, based on last night’s closing stock price of $20.54. The stock has technical support in the $19 price area. If the shares can firm up, we see overhead resistance around the $21-$22 price levels.
CSX Corporation (CSX) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.