Goldman Sachs Says Buy CSX

Goldman Sachs has a Buy rating and a $95 price target on shares of CSX CSX. In a note to investors, Goldman Sachs writes, "We reiterate our Buy rating on CSX shares following its May 17-18 Analyst Day. We believe the top-line opportunity for CSX is not fully reflected in our above-consensus EPS. The key drivers of upside are growing port capacity for export coal and impressive intermodal opportunities. In addition, we continue to believe 35% margin targets by 2015 are achievable, though not in our estimates. Given higher expected volume growth, offset by lower share repurchase, our annual EPS estimates are unchanged (although we make minor revisions to revenues and quarterly EPS progression). Our $95, 12-month price target (26% upside) equates to 14.5x our 2012E EPS." Shares of CSX are up $1.70 to $77.13, a gain of 2.2% this morning.