After a BIG Run, Can CSX Climb Another 15% to BofA’s $46 Price Target?

CSX Corporation (NASDAQ:CSX) has been 1 of the stronger performers successful the railroad assemblage implicit the past year, with shares up much than 34% implicit the trailing 12 months. Year-to-date, the banal has gained 9.22%, though it has pulled backmost implicit the past week to a existent terms of $39.62, disconnected its 52-week precocious of $43.35.

Most analysts transportation a measured outlook, with Wall Street's statement people sitting adjacent $40.19. But Bank of America conscionable issued a revised terms people of $46 connected CSX, implying a important premium to caller levels connected a Buy rating. That people sits good supra the existent trading terms of $39.76 and good supra the mean Wall Street forecast. Can CSX realistically scope $46 by the extremity of 2026?

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Bank of America trimmed its people from $48 to $46 aft acknowledging that Q1-to-date carloads are moving up conscionable 1.9% year-over-year, beneath the firm's anterior estimation of 4.4%. BofA present models full-year carload maturation of 2.3% and has trimmed its Q1 and full-year 2026 EPS estimates by 5% and 2%, to $0.38 and $1.80, respectively. Despite the cut, the steadfast maintains its Buy rating, pointing to coagulated railroad operating show and aboriginal signs of an concern economical inflection arsenic the halfway rationale for staying constructive.

1. Intermodal momentum and Howard Street Tunnel: Intermodal gross roseate 7% successful Q4 2025 connected 5% measurement growth, and the completion of the Howard Street Tunnel upgrade opens double-stack capableness from the West Coast done Baltimore. The Howard Street Tunnel upgrade opens double-stack capableness from the West Coast done Baltimore, a structural infrastructure vantage for freight stock gains.

2. Operating borderline expansion: Management guided for 200 to 300 ground points of year-over-year operating borderline enlargement successful 2026 done workforce optimization and outgo discipline, with astir $150 cardinal successful non-recurring 2025 charges that won't repeat. Higher margins construe to much durable earnings.

3. Free currency travel recovery: CEO Steve Angel guided that escaped currency travel should turn astatine slightest 50% versus 2025, supported by CapEx falling beneath $2.4 cardinal arsenic large infrastructure projects wrapper up. Rising escaped currency travel supports dividend maturation and stock buybacks.