Citi analyst Christian Wetherbee noted that The Wall Street Journal reported that Canadian Pacific (CP) recently revived its effort to acquire CSX (CSX) and said he always saw CSX as a somewhat better strategic fit for CP than Norfolk Southern (NSC), which the company has also pursued. The analyst, who'd previously believed CSX could fetch a takeover in the low $40s, now thinks a value in the upper $30s would be possible by applying the same takeout multiple in the 11x EBITDA range. While Wetherbee does not believe a transaction for CSX is all that likely, he does think the active topic of M&A could add value to CSX shares. The analyst has a $29 price target and Buy rating on CSX shares.

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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