CSX price target lowered to $38 from $40 at BMO Capital

BMO Capital lowered the firm’s price target on CSX (CSX) to $38 from $40 and keeps an Outperform rating on the shares. The company’s Q4 EBIT was below the firm’s estimate and the expected negative impact of known transitory items, including lower coal commodity prices and expenses related to construction projects, is more punitive than anticipated, the analyst tells investors in a research note. BMO adds however that the medium-term growth opportunity for CSX is intact and the freight cycle is on an “improving trajectory”.