Deutsche Bank Likes CSX (CSX)

Deutsche Bank has a Buy rating and a $71 price target on CSX Corp. CSX. In a note sent to investors, Deutsche Bank writes, "Rail carload volumes (ex- intermodal) were up 4% y/y for the week ending 11/20/2010. Volume gains y/y were driven by metals (+21% y/y), coal (+3% y/y), and chemicals (+7% y/y). Sequentially, carload volumes decreased 0.3% w/w as general weakness offset sequential improvement in coal carloads (+1% w/w). Economically sensitive carloads (ex coal and ag) were up 7% y/y and down 1% w/w. We expect carload volumes to remain relatively stable in Q4, which should continue to drive solid operating leverage across the Class I railroads." Shares of CSX gained 11 cents yesterday to close at $61.78, a gain of 0.2%.