Susquehanna Sees CSX Refocusing on Fundamentals Under New CEO

CSX Corporation (NASDAQ:CSX) is included among the 12 Most Profitable Dividend Stocks to Buy in 2026.

On January 23, Susquehanna lifted its price target on CSX Corporation (NASDAQ:CSX) to $39 from $38 and kept a Neutral rating. The update came after the company’s fourth-quarter results. Under new CEO Steve Angel, the firm said CSX is focusing on the basics that tend to matter over time, including lower costs, better returns on invested capital, and stronger cash flow. If management delivers, that groundwork could also improve long-term strategic flexibility.

CSX reported its earnings a day earlier, and the quarter was mixed. Revenue and profit both missed expectations as weaker industrial demand and lower export coal volumes offset pricing gains and solid intermodal traffic. That backdrop is not unique to CSX. Rail operators across the US have been dealing with soft industrial activity and uneven freight volumes, forcing a sharper focus on expenses and operating efficiency.

CEO Steve Angel said the quarter reflected that environment, along with steps already taken to adjust the cost base. He added that the company plans to lean harder into productivity, cost control, and capital discipline in 2026.

Management also forecast operating margin expansion of 200 to 300 basis points in 2026 compared with adjusted 2025 levels. That outlook was enough to lift the stock about 3.2% in extended trading.

CSX posted an operating margin of 31.6% for the quarter, up 30 basis points from a year earlier. Revenue totaled $3.50 billion, falling short of the $3.54 billion analysts were expecting.

CSX Corporation (NASDAQ:CSX) is a transportation company that provides rail, intermodal, and rail-to-truck transload services across its network.

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