CSX Earns $41 Price Target, OKs $670M Wabtec Locomotive Upgrade
BMO Capital raised CSX’s price target to $41 from $38, maintaining a Market Perform rating and citing sustained freight demand recovery. CSX also agreed to a $670 million Wabtec deal for 100 new Evolution Series locomotives and 50 modernized units to boost fuel efficiency and reliability.
1. Analyst Raises Price Target
BMO Capital lifted CSX’s price recommendation to $41 from $38 while retaining a Market Perform rating, highlighting that the transportation sector rally remains justified within the broader freight cycle recovery.
2. $670M Wabtec Locomotive Upgrade
CSX signed a $670 million agreement with Wabtec to acquire 100 new Evolution Series locomotives and modernize 50 older units, incorporating Trip Optimizer with Smart Horsepower per Ton to enhance fuel efficiency, pulling power and diagnostic capabilities.
3. Outlook for Freight Recovery
The firm views the current phase of freight recovery—peaking in 2022—as ongoing and believes that continued improvement in shipment volumes could support further gains for CSX and its transportation peers.