Goldman Sachs has shifted its rating on CSX from Buy to Neutral, holding the price target at $35. The downgrade reflects a broader change in freight market dynamics, where trucking is expected to recover more quickly than rail in the current cycle.
🔧 CSX is facing operational headwinds that could hinder its ability to attract truck freight to rail. Challenges in improving trip plan compliance and executing cost reduction strategies have created uncertainty around near-term performance.
🚛 The trucking sector’s faster response to the freight rebound places railroads like CSX at a relative disadvantage, especially in intermodal freight where pricing power typically lags behind.
💰 On the dividend front, CSX remains solid. It pays an annual dividend of $0.52 per share, yielding around 1.66%. With a payout ratio under 30%, the company retains flexibility to reinvest while rewarding shareholders consistently.
Though CSX holds a strong long-term position in rail transport, current sector preferences and execution risks have prompted a more cautious outlook from analysts.