TD Cowen has adjusted its outlook on CSX Corporation (NASDAQ: NASDAQ:), reducing the price target to $35 from the previous $36, while maintaining a Hold rating on the stock.
The adjustment follows CSX’s performance in the third quarter, which fell short of both the firm’s forecast and the consensus. Additionally, CSX has revised its fourth-quarter expectations downward.
The freight transportation company, which operates one of the largest rail networks in North America, anticipates volume growth in the fourth quarter despite encountering challenges at the start of the period.
According to the analyst from TD Cowen, the company’s growth prospects over the medium term are likely to be constrained due to the costs associated with recovering from recent storm impacts.
These costs are expected to be a significant factor as CSX undertakes what is described as a “significant rebuild.” This reconstruction effort is necessary to address the damages sustained during the storms, which have affected the company’s operations and financial performance.
In the statement provided, the analyst reiterated their Hold rating on CSX shares. This stance suggests that the firm advises investors to maintain their current position in the stock without increasing or decreasing their holdings significantly at this time.
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