RBC Capital Cuts CSX Rating On Supply Chain Congestion

RBC Capital analyst Walter Spracklin downgraded CSX Corp CSX to Sector Perform from Outperform, and the price target lowered to $32 (implying an upside of 4.9%) down from $37.
Spracklin cites the decline in earnings estimates for the stock due to supply chain congestion and the lack of any company-specific catalysts to reverse the trend.
Further, he sees a better opportunity for a relative return elsewhere in the sector while also cutting his FY21 EBITDA outlook to $6.52 billion from $6.68 billion.
Price Action: CSX shares are trading lower by 1.28% at $30.51 on the last check Friday.