As previously reported, Raymond James upgraded CSX to Outperform from Market Perform and established a $55 price target. Analyst Patrick Brown believes CSX is at an inflection point under new CEO Hunter Harrison and should see significant improvement in service, margins, and free cash flow. The analyst said the Q1 conference call provided detail on redesign plans and he is more confident that an improved network can create operational improvements. James expects the redesigned network will streamline operations and his optimization model suggest sub-60% OR is achievable.

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.