BMO Capital Raises CSX Price Target, Sees Continued Freight Recovery

Group 1: Company Overview - CSX Corporation (NASDAQ:CSX) is recognized as one of the 13 Best NASDAQ Dividend Stocks to Buy Now [1] - The company provides rail transportation, intermodal services, and rail-to-truck transfer solutions, serving various industries including energy, industrial, construction, agriculture, and consumer goods [5] Group 2: Recent Developments - On February 19, BMO Capital raised its price recommendation on CSX Corporation to $41 from $38, maintaining a Market Perform rating [2] - CSX announced a $670 million agreement with Wabtec Corporation to upgrade its locomotive fleet, which includes 100 new Evolution Series locomotives and 50 modernized locomotives [3] - The new locomotives are expected to enhance fuel efficiency, pulling power, and reliability, aiding CSX in handling long-haul and heavy freight more efficiently [3][4] Group 3: Industry Context - BMO Capital noted that the strong rally in transportation stocks since late November 2025 appears reasonable within the context of the freight cycle, which peaked in 2022, indicating an ongoing recovery phase [2] - As long as freight demand continues to improve, transportation stocks like CSX may have further potential for growth [2]