Stock Update (NYSE:CSX): Rail mergers could be ‘destructive’ to shareholder value – CSX CEO

[Reuters] – No. 3 U.S. railroad CSX Corp does not see any compelling benefits stemming from mergers of major railroads in North America and fears regulatory burdens could be attached to the approval of deals that would add to the cost of doing business, the railroad’s top executive said on Wednesday. “The benefits seem somewhat unconvincing, I really think the Class I railroads have great opportunities to create shareholder value without mergers,” chief executive Michael Ward told Reuters by phone when asked about Canadian Pacific’s unsolicited bid for No. 4 U.S. railroad Norfolk Southern Corp . Read more on this. CSX Corp. (CSX) , currently valued at $21.79B, started the session at $23.52. Shares have traded today between $21.75 and $23.91 per share and has traded between $21.75 and $37.67 over the past 12 months. CSX (CSX) shares are currently priced at 11.79x this year’s forecasted earnings, which makes them relatively inexpensive compared to the industry’s 11.80x earnings multiple for the same period. And for income investors, the company pays shareholders $0.72 per share annually in dividends, yielding 3.07%. In a review of the consensus earnings estimate this quarter, 17 sell-side analysts are looking at $0.41 per share, which would be $0.04 worse than the year-ago quarter and a $0.04 sequential decrease. Investors should also note that the full-year EPS estimate of $2.01 is a $0.01 improvement when compared to the previous year’s annual results. The quarterly earnings estimate is predicated on a consensus revenue forecast of $2.84 Billion. If reported, that would be a 6.27% decrease over the year-ago quarter. More recently, Buckingham Research upgraded CSX from Neutral to Buy (Oct 9, 2015). Previously, Stifel upgraded CSX from Hold to Buy. When considering if perhaps the stock is under or overvalued, the average price target is $29.83, which is 26.83% above where the stock opened this morning. See more in (NYSE:CSX) Similar Articles: Market Update: Union Pacific Corporation (NYSE:UNP) – Union Pacific will do all in its power to stop rail mergers- CEO Market Update (NYSE:CSX): CSX and Partners Celebrate Groundbreaking, Construction of Pittsburgh Intermodal Rail Terminal Stock Update: CSX Corp (NYSE:CSX) – Grants Available To Improve Healthy Food Transportation And Access In 22 States