Opinions
Geoff Scott
CSX Corp
CSX-Q
TOP PICK
Mar 20, 2018
$56.970
Stock price when the opinion was issued
Transportation
It's the ideal tool to help you make quicker, more informed decisions for
managing and tracking your investments.
You might be interested:
Premium content
TOP PICK
BUY
This is an east coast railroad, and east coast ports will get more business (west coast ports are dysfunctional). They are minting money with coal shipping; Europe has de-nuclearized, so it needs other sources of energy. A long-term investment. Is down 16% this year, but has a lot of upside.
Transportation
They are continuing the plan that Hunter Harrison put in place to improve efficiency, drive down the operating ratio, and sell assets. Velocity is up 20% this year: trains are moving faster, which provides better service and increases capacity. CSX is improving its capital profile, with higher cash flow margins. He expects every dollar of revenue to convert to about 30 cents in the future from a historical level of 8 cents. There have been complaints from the customer (shipper) base as a result of all the cost cutting but if CSX keeps improving its operating metrics, the customers’ concerns will be resolved. (Analysts’ price target is 62.92$)