CSX is poised to grow as it closes new deals and clears operational roadblocks, even as competition in the freight rail industry heats up, according to Wells Fargo. The investment firm upgraded CSX stock to overweight from equal weight. It also raised its price target to $40 from $37, suggesting 15.5% upside. “The BNSF/CSX intermodal commercial agreements have begun and are expected to drive incremental volume onto CSX’s network,” analyst Christian Wetherbee said Thursday in a note to clients. “This has the potential to drive volume outperformance for CSX just as volume growth is likely to decelerate at other U.S. rails.” CSX YTD mountain CSX year to date In August, CSX announced a deal with BNSF Railway to offer new coast-to-coast shipping solutions between the western and eastern U.S. The partnership is aimed at strengthening the companies’ services as the freight rail industry becomes increasingly competitive — particularly as Union Pacific moves ahead with its plans to acquire Norfolk Southern to create a transcontinental railroad. But while rising competition poses a major challenge to CSX, the freight train company is poised to benefit from tailwinds that could help it push past its rivals. CSX’s completion of its Howard Street Tunnel and Blue Ridge Subdivision construction projects, for example, is expected to “improve fluidity and productivity” across the transportation provider’s routes, Wells Fargo noted. And now that the projects are done, CSX is poised to save an additional $10 million in monthly operational expenses, they said. Wells Fargo’s call on CSX falls in line with most analysts’ ratings. Of the 28 Wall Street shops that have initiated coverage on CSX, 19 have rated the stock a buy or strong buy. CSX shares rose nearly 1% in premarket trading on Thursday. The stock is up 4.8% in the year to date. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
