- CSX Corp. (NYSE:CSX) fell 7.6% in today's trade on worries that CEO Hunter Harrison may not return to the company after being placed on medical leave, while some investors and governance experts called on the company to disclose more about Harrison’s health condition.
- Citi analyst Christian Wetherbee recommends using today's CSX selloff as a buying opportunity saying most of what needed to be done to turn around the railroad already has been done, and CSX was in better shape than Canadian Pacific when Harrison took over in 2012; he keeps a Buy rating on the stock with a $58 price target.
- But Loop Capital's Rick Paterson thinks the appointment of Jim Foote as interim CEO is an "ominous sign" and implies Harrison's return is "less than likely," adding that he sees CSX's future as "very cloudy" if Harrison does not return since the CEO likely has not had enough time to successfully change the company's network and culture; he rates the stock as a Hold with a $57 price target.
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