Raymond James raised its price target for railroad company CSX Inc. to $41.00, up from $40.00, while holding an Outperform recommendation as of January 23, 2026. The stock currently trades around $35.78, with a market capitalization nearing $66.62 billion and a price-to-earnings ratio of 23.38, as reported by InvestingPro.
This revision stems from Raymond James' favorable outlook on the progress of CSX's ONECSX program, a comprehensive initiative focused on enhancing operational efficiency and cultivating a transformative corporate culture. The brokerage firm anticipates that these initiatives will bolster the company’s revenue streams, profitability margins, earnings per share, and free cash flow generation over the upcoming years.
Supporting these expectations, Raymond James emphasized the leadership approach of newly appointed CEO Steve Angel. Mr. Angel aims to combine enhanced service delivery with an innovative internal industrial development framework while maintaining strict discipline in managing returns on invested capital. This strategic focus is viewed as a potential catalyst for sustained growth and increased market share, which could drive earnings and free cash flow to levels potentially exceeding current market forecasts.
On the dividend front, CSX has demonstrated consistent shareholder returns, maintaining dividend distributions for 45 consecutive years. Presently, the company's dividend yield stands at 1.45%, accompanied by dividend growth of 8.33% in recent periods.
In recent quarterly results, CSX generated earnings per share (EPS) of $0.42 in the fourth quarter of 2025, marginally exceeding consensus analyst estimates of $0.41, equating to a 2.44% positive earnings surprise. However, the company faced a revenue shortfall, reporting $3.51 billion relative to the $3.55 billion expected by analysts, representing a 1.13% negative revenue variance. These mixed financial outcomes illustrate a nuanced performance profile, with the earnings beat providing a positive signal, while the revenue miss may give investors reason for cautious scrutiny.
Following the earnings announcement, CSX's stock price experienced slight volatility in after-hours trading, reflecting investor recalibration in light of the earnings report. These developments offer valuable insight into the company's current financial condition and outlook as it executes its ongoing strategic initiatives.