Goldman Sachs Reiterates Buy Rating on CSX Corp., its Top Transportation Pick

In a report focusing on transportation, Goldman Sachs that CSX Corp. CSX is its top pick. “We believe railroads have a positive setup, given (1) volumes that have seemed to find support in recent weeks despite obstacles (flooding, tornadoes, forest fires), (2) our positive outlook for export coal (thermal and metallurgical), (3) share gains given still-high fuel prices, and (4) strong pricing trends that are less dependent on macro,” Goldman Sachs writes. “Our top pick is CSX (Buy) with high exposure to coal exports, a growing share of intermodal traffic, and industry high 2011 pricing.” CSX Corp. closed Wednesday at $25.76.