Wells Fargo has revised its outlook for CSX Corporation (CSX, Financial), reducing the price target from $31 to $28. Despite maintaining an Equal Weight rating, the financial institution sees significant hurdles in the company's operations, which are expected to extend into the first half of next year.
Following a recent review, analysts at Wells Fargo have adjusted their earnings expectations, projecting a mid-teens percentage decline in earnings per share (EPS) for CSX this year. Although some of these challenges have already been reflected in the stock's current valuation, the forecast indicates continued pressure on the rail transport company's performance.
The decision to lower the price target underscores concerns over CSX's ability to address operational inefficiencies in the near term, suggesting ongoing efforts are required to stabilize and improve results moving forward. Investors will be watching closely to see if CSX can implement changes to reverse the EPS decline and enhance its market position.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 25 analysts, the average target price for CSX Corp (CSX, Financial) is $33.89 with a high estimate of $38.00 and a low estimate of $27.00. The average target implies an upside of 23.92% from the current price of $27.35. More detailed estimate data can be found on the CSX Corp (CSX) Forecast page.
Based on the consensus recommendation from 29 brokerage firms, CSX Corp's (CSX, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for CSX Corp (CSX, Financial) in one year is $35.53, suggesting a upside of 29.91% from the current price of $27.35. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the CSX Corp (CSX) Summary page.
