Stifel analyst John Larkin expects the shares of CSX (CSX) and Union Pacific (UNP) to rebound in the near-term. He says that disappointment over CSX's Q2 results was driven by overly high expectations following the hiring of its new CEO. Referring to the new CEO, Larkin says that he "may be a railroading and costsaving God-send but miracles can take some time." The analyst believes that the decline in Union Pacific's shares was caused by "overly negative sentiment." He is upbeat on the stocks due to "positive 3Q carload volumes and a potential for more positive dialogue on the space in the coming weeks." But he keeps Hold ratings on both names.

UBS analyst Thomas Wadewitz lowered the firm's price target on CSX to $44 from $46 and keeps a Buy rating on the shares. CSX's Q1 EPS was modestly above consensus, showing improvement in the Purchased Services and Other expense line and providing positive commentary on their outlook for volumes, the analyst tells investors in a research note. The Q1 report was solid and CSX provided a constructive outlook, UBS contends.

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