JPM upgrades CSX Corp, sees temporary impact on rail industry from UAW strikes

Helen of Troy

11/10/2023 16:53

** JP Morgan says UAW strikes would be a temporary
disruption for the entire rail industry and upgrades U.S.
railroad operator CSX Corp  CSX.O  to "overweight" from
"neutral"
    ** CSX pares gains of about 1.5% after JP Morgan upgrade,
last down 0.1% at $31.50
    ** JPM says co has best near-term growth opportunity from
its services, sees YoY volume gains in Q423; adds co to its
Analyst Focus List as a value idea    
    ** Says co identified labor shortages earlier and is better
priced for inflation compared to peers 
    ** Sees potential for meaningful truckload conversion and
market share gains in a year - JPM
    ** JPM sees appointment of COO Mike Cory, who has experience
of handling overcapacity in co, to boost operations 
    ** JPM raises PT on stock to a Street-high of $40 from $37,
new PT represents upside of 26.8% to co's last close 
    ** Stock up 2.3% YTD 
    

 (Reporting by Purvi Agarwal in Bengaluru)
 ((Purvi.Agarwal@thomsonreuters.com))