Morgan Stanley Reiterates Overweight on CSX

Morgan Stanley is out with its report today on CSX CSX, reiterating Overweight. In a note to clients, Morgan Stanley writes, "We've long viewed CSX as particularly favorably positioned to benefit from each of the key themes underpinning our broader rail thesis including: (1) Operating leverage to recovering volumes, (2) Continued pricing strength, and (3) Productivity improvements and mgmt reinforced this view by (1) issuing long-term Op. Inc. and EPS growth guidance in excess of our already bullish view and (2) speaking to a number of positive nearer-term trends such as growth in both domestic and export coal volumes. Therefore, at <14x TMF P/E on consensus, which we believe is low, we reiterate our OW view on the stock." Morgan Stanley maintains an $86 PT on CSX.