Morgan Stanley Raises CSX Price Target Amid Positive Freight Outlook

CSX Corporation (NASDAQ:CSX) is included among the 15 Best Stocks to Buy for the Long Term.

On December 8, Morgan Stanley raised its price target on CSX Corporation (NASDAQ:CSX) to $30 from $27 while maintaining an Equal Weight rating on the shares. The firm adjusted several ratings and targets across the freight transportation group as part of its 2026 outlook. It also upgraded its view of the overall freight transportation industry to Attractive from In Line for the coming year. According to the analyst, risk and reward levels look better than they have since 2020, even if the “coast is not entirely clear.”

CSX Corporation (NASDAQ:CSX) third-quarter earnings showed mixed trends. The company’s volumes reached 1.61 million units, up 1% from the same quarter of 2024 and 2% higher than the previous quarter. Revenue for the period came in at $3.59 billion, down 1% YoY. The company pointed out that lower export coal prices and softer merchandise volume weighed on results, but stronger pricing in merchandise, growth in intermodal shipments, and higher revenue from other categories helped cushion the decline.

That said, operational metrics were a bright spot. CSX Corporation (NASDAQ:CSX) reported its fastest train velocity since early 2021. Dwell time reached its lowest level since mid-2023, and the number of average daily cars online fell to its lowest point since 2020. Management also highlighted that the Howard Street Tunnel and Blue Ridge subdivision projects were completed ahead of schedule, adding that both will boost capacity and resilience moving forward.

CSX Corporation (NASDAQ:CSX) is a leading transportation company that provides rail service, intermodal options, and rail-to-truck transload solutions for customers across a wide range of markets.

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