** Bernstein lifts price target on rail operators CSX CSX.O, Norfolk Southern NSC.N and Union Pacific UNP.N, driven by better-than-expected carload volumes, improved market sentiment and attractive stock valuations
** Says carload volumes came in slightly above expectations for the quarter, helping rail stocks recover after a broader market dip earlier in Q2 caused by U.S. trade policy concerns
** Brokerage has updated its rail models to reflect slightly stronger volumes, with UNP benefiting from strong coal demand and better pricing power
** However, it says CSX and NSC may face some coal-related volume pressure
** Rating of Norfolk and Union Pacific unchanged at "outperform" and CSX unchanged at "market-perform"
** As of last close, S&P 500 Rail Transportation (Sub Ind).SPLRCRAIL had risen 4.6% YTD
Companies | New PT | Old PT | Upside to the stock's last close |
CSX | $36 | $30 | 8.9% |
Norfolk | $295 | $258 | 13.5% |
Union Pacific | $271 | $267 | 15.1% |
(Reporting by Apratim Sarkar)
((Apratim.Sarkar@thomsonreuters.com;))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.