BMO Capital Raises CSX Price Target, Sees Continued Freight Recovery

Vardah Gill

Mon, February 23, 2026 at 11:33 AM GMT+9 2 min read

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CSX Corporation (NASDAQ:CSX) is included among the 13 Best NASDAQ Dividend Stocks to Buy Now.

BMO Capital Raises CSX Price Target, Sees Continued Freight Recovery

On February 19, BMO Capital raised its price recommendation on CSX Corporation (NASDAQ:CSX) to $41 from $38. The firm reiterated a Market Perform rating on the shares. The update came as part of a broader research note on the transportation sector. The firm said the strong rally in transportation stocks since late November 2025 still looks reasonable when viewed in the context of the full freight cycle, which peaked in 2022. According to BMO, the recovery phase appears to be ongoing. As long as freight demand continues improving, transportation stocks like CSX could still have room to move higher.

Earlier, on February 9, CSX announced a $670 million agreement with Wabtec Corporation to upgrade its locomotive fleet. The deal includes 100 new Evolution Series locomotives, 50 modernized locomotives, and a range of digital solutions and services. The new Evolution Series locomotives are expected to improve fuel efficiency, pulling power, and reliability. These upgrades are designed to help CSX handle long-haul and heavy freight more efficiently while reducing fuel consumption. CSX also plans to modernize its older D9 locomotives by converting them from DC to AC traction. This change will extend their service life and bring them closer in line with the rest of the fleet. The upgraded locomotives will also support advanced control systems and diagnostics, which should improve performance and operating efficiency.

Both the new and upgraded locomotives will include Trip Optimizer with Smart Horsepower per Ton. This EPA-certified system helps improve fuel efficiency by automatically adjusting locomotive performance based on operating conditions. CSX expects deliveries of the new Evolution Series locomotives to begin this year. Deliveries of the modernized locomotives are scheduled to begin in 2027.

CSX Corporation (NASDAQ:CSX) provides rail transportation, intermodal services, and rail-to-truck transfer solutions. The company serves a wide range of industries, including energy, industrial, construction, agriculture, and consumer goods.

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