Citi Has Buy on CSX

Citi Investment Research is out with a research report on CSX (NYSE: CSX) after it reported earnings. It has a Buy rating and a $25 price target on shares.

In a note to clients, Citi Investment Research writes, "CSX reported 3Q11 EPS of $0.43, in line with our and consensus' target. The quarter was a bit weaker than expected, as revenue strength was offset by a bit of cost creep (mostly fuel however) yielding a slight operating miss. CSX made up the operating miss with a large share repurchase, buying back 46 million shares for approximately $1 billion in the quarter, and blowing away our target for $285 million (added a penny to EPS). Operating expenses less fuel were up 7.1% YOY, likely in line or slightly higher than the company's core price gain (disclosed on Wednesday's conference call). We expect reaction to the results to be modestly negative, despite lowered expectations and tough operating conditions, given operating income softness."

Shares of CSX closed at $21.34 yesterday.