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Opinions David Burrows
CSX CorpCSXCOMMENTApr 19, 2016
David BurrowsUnknown
$26.41
Stock price when the opinion was issued
$45.47
As of Jun 18, 2026. Market Open.
Transportation
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This is an east coast railroad, and east coast ports will get more business (west coast ports are dysfunctional). They are minting money with coal shipping; Europe has de-nuclearized, so it needs other sources of energy. A long-term investment. Is down 16% this year, but has a lot of upside.
Transportation
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WATCH
The rails are an interesting space because they are very much affected by the trade dispute with China. It has suffered a bit but then been brought back into a more reasonable valuation range. Revenues will probably drop one percent this year. He does not think it can keep going up. Let the trade issue resolve itself before stepping in.
Transportation
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They are continuing the plan that Hunter Harrison put in place to improve efficiency, drive down the operating ratio, and sell assets. Velocity is up 20% this year: trains are moving faster, which provides better service and increases capacity. CSX is improving its capital profile, with higher cash flow margins. He expects every dollar of revenue to convert to about 30 cents in the future from a historical level of 8 cents. There have been complaints from the customer (shipper) base as a result of all the cost cutting but if CSX keeps improving its operating metrics, the customers’ concerns will be resolved. (Analysts’ price target is 62.92$)
Geoff ScottOwned
Transportation
A $25 billion company operating through 23 US states. Rails and transports led to the downside in the correction that started last March/April. Transports have made a nice turn and are behaving much better. Canadian rails have had great rallies off the lows, and are behaving quite well. If you think energy prices can remain relatively low, truckers can be competition to rails. Thinks there are some headwinds. This looks okay, but he would prefer Canadian National (CNR-T) which gets north/south traffic, and the shares have behaved much better. Financials look very strong and they are going to grow their earnings 13% this year and probably 10% next year.