BofA Upgrades CSX to Buy and Raises Price Target

CSX Corporation (NASDAQ:CSX) is one of the 12 Best Logistics Stocks to Buy According to Hedge Funds. On July 17, BofA Securities upgraded CSX Corporation (NASDAQ:CSX) from “Neutral” to “Buy” and increased its price target from $34 to $42.

According to BofA Securities, this decision reflects increased chances for mergers and acquisitions among US railroad companies. The research firm believes this could drive higher valuations for companies like CSX Corporation (NASDAQ:CSX).

The increased target price of $42 is based on a valuation of 21.5 times BofA’s earnings estimate for CSX Corporation (NASDAQ:CSX) in 2026, up from the previous multiple of 20.5 times for the firm’s 2025 forecast.

BofA Securities also pointed out that CSX Corporation (NASDAQ:CSX) has made internal service improvements, which was another factor warranting a valuation reassessment of the company.

CSX Corporation (NASDAQ:CSX) is one of the largest suppliers of rail-based freight transportation in North America. The company offers traditional rail service and the transport of intermodal containers and trailers.

While we acknowledge the potential of CSX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.