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Fly News Breaks for December 10, 2019
CSX
Dec 10, 2019 | 06:46 EDT
75Citi analyst Christian Wetherbee downgraded CSX to Neutral from Buy with a price target of $75, down from $80. CSX has been a "great turnaround and earnings growth story" over the last three years, but as headwinds build in 2020, there is "real risk" to year-over-year earnings growth, Wetherbee tells investors in a research note. While export coal has grabbed the most attention recently, broader volume weakness and a diminishing well of cost takeout opportunities suggests CSX's revenue and EBIT falls next year, says the analyst. He believes the company's near best in class free cash flow may not be enough to push shares higher.