(The Associated Press circulated the following on April 14.)
NEW YORK — Lehman Brothers raised estimates and a price target on CSX Corp. Tuesday, saying the railroad operator’s strong prices will likely help offset high fuel costs.
Analyst Garrett Chase raised his price target to $55 from $44, implying. His new price target is about 4 percent below Monday’s $57.11 close.
Chase raised his 2008 estimate to profit of $3.50 per share from $3 per share. Analysts polled by Thomson Financial expect, on average, earnings of $3.44 per share for the year.
So far in 2008 shares of Jacksonville, Fla.-based CSX have risen 30 percent, while the cost of light, sweet crude has jumped about 16 percent.
Chase said the company’s strong pricing will help sustain earnings estimates amid high fuel costs and lower volume. Much of the stock’s potential is currently priced in, he said.