CSX Corporation’s stock rose 5% last week, reaching near its 52-week high of $40 per share, driven by analyst target revisions and strong intermodal revenue growth in its Q4 results. Despite management guiding for low single-digit revenue growth and margin expansion in 2026, the valuation model suggests the stock is currently overvalued with a target price of $43, indicating future returns will depend more on operational consistency than valuation expansion. The company’s ability to maintain high operating margins through cost discipline and network efficiency is key for its measured growth in a low-growth environment.
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CSX Rose 5% Last Week. Here’s Where the Stock Could Go in 2026
CSX Corporation’s stock rose 5% last week, reaching near its 52-week high of $40 per share, driven by analyst target revisions and strong intermodal revenue growth in its Q4 results. Despite management guiding for low single-digit revenue growth and margin expansion in 2026, the valuation model suggests the stock is currently overvalued with a target price of $43, indicating future returns will depend more on operational consistency than valuation expansion. The company’s ability to maintain high operating margins through cost discipline and network efficiency is key for its measured growth in a low-growth environment.