BMO Capital Raises CSX Price Target, Sees Continued Freight Recovery

CSX Corporation (NASDAQ:CSX) is included among the 13 Best NASDAQ Dividend Stocks to Buy Now.

On February 19, BMO Capital raised its terms proposal connected CSX Corporation (NASDAQ:CSX) to $41 from $38. The steadfast reiterated a Market Perform standing connected the shares. The update came arsenic portion of a broader probe enactment connected the proscription sector. The steadfast said the beardown rally successful proscription stocks since precocious November 2025 inactive looks tenable erstwhile viewed successful the discourse of the afloat freight cycle, which peaked successful 2022. According to BMO, the betterment signifier appears to beryllium ongoing. As agelong arsenic freight request continues improving, proscription stocks similar CSX could inactive person country to determination higher.

Earlier, connected February 9, CSX announced a $670 cardinal statement with Wabtec Corporation to upgrade its locomotive fleet. The woody includes 100 caller Evolution Series locomotives, 50 modernized locomotives, and a scope of integer solutions and services. The caller Evolution Series locomotives are expected to amended substance efficiency, pulling power, and reliability. These upgrades are designed to assistance CSX grip long-haul and dense freight much efficiently portion reducing substance consumption. CSX besides plans to modernize its older D9 locomotives by converting them from DC to AC traction. This alteration volition widen their work beingness and bring them person successful enactment with the remainder of the fleet. The upgraded locomotives volition besides enactment precocious power systems and diagnostics, which should amended show and operating efficiency.

Both the caller and upgraded locomotives volition see Trip Optimizer with Smart Horsepower per Ton. This EPA-certified strategy helps amended substance ratio by automatically adjusting locomotive show based connected operating conditions. CSX expects deliveries of the caller Evolution Series locomotives to statesman this year. Deliveries of the modernized locomotives are scheduled to statesman successful 2027.

CSX Corporation (NASDAQ:CSX) provides obstruction transportation, intermodal services, and rail-to-truck transportation solutions. The institution serves a wide scope of industries, including energy, industrial, construction, agriculture, and user goods.

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