On Monday, an analyst at Sterne Agee released a report that reiterated a bullish rating on railroad transportation company CSX Corporation (CSX) due to the possibility of coal weakness bottoming out.
The analyst, Jeffery Kauffman, maintains a “Buy” rating on CSX and sees shares reaching $27. This target suggests a 13% upside to Monday’s closing price of $23.94.
Kauffman noted, “Following presentations by CSX late last week and discussions with our own Coal team at Sterne, we are of the view that the weakness in Eastern Utility Coal Markets could be bottoming – a positive development for both railroads. Furthermore, accelerating growth in Crude-by-Rail is stemming more and more of this weakness, and should garner more attention in 2H13.”
CSX shares were up a fraction during pre-market trading on Tuesday. The stock is up 7.6% over the past twelve months.
The Bottom Line
Shares of CSX Corp (CSX) have a dividend yield of 2.34% based on last night’s closing price of $23.94 and the company’s annualized dividend payout of 56 cents per share.
CSX Corporation (CSX) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.