J.P. Morgan Raises CSX Estimates

CSX Corporation's (NYSE: CSX) 4Q10 earnings report and guidance comments for 2011 were both better than expected and they provide a notable contrast to the 2011 outlook comments from UNP last week.

“We expect CSX management to add further detail which supports their positive margin and export coal outlook on their Tuesday morning conference call, and we expect a positive response from the stock,” J.P. Morgan writes.

“Due to a combination of stronger export coal volume and more optimistic OR assumptions, we are raising our 2011 and 2012 EPS estimates. Our 2011
EPS rises from $4.89/share to $5.05 (vs Consensus of $4.82) and our 2012 estimate increases from a conservative $5.30 to $5.70/share (Consensus is $5.54/share). Our Dec 2011 price target (14x on our 2012 EPS) rises to $80.”

CSX Corporation closed Monday at $67.71.