Goldman Sachs Upgrades CSX To Neutral; Raises PT To $63 (CSX)

Goldman Sachs is upgrading CSX Corp. (NYSE: CSX) to Neutral from Sell, given stronger-than-expected incremental margins that appear likely to continue.

“Our original relative Sell thesis on CSX was based on a premium valuation, potential margin missteps, and our negative view of East Coast coal,” Goldman Sachs writes. “However, operational metrics indicate a relatively healthy network while share buybacks could accelerate.”

Goldman Sachs said that its 12-month price target goes to $63 from $60 “to better reflect a multiple more in line with peers.”

CSX Corp. currently trades at $60.27.