Transportation company CSX Corp. (CSX) has agreed to acquire Quality Carriers from Quality Distribution Inc. CSX is a transportation company providing rail, intermodal, and rail-to-truck transload services and solutions. Quality Carriers is a provider of truck transportation for bulk liquid chemicals in North America.
The terms of the acquisition were not disclosed. CSX expects it to close in Q3.
Quality has an extensive fleet of bulk tank trucks and around 2,500 drivers. The acquisition is expected to widen the presence of both companies and create a unique solution for multimodal chemical transport.
CSX President and CEO James M. Foote said, “The acquisition of Quality Carriers further demonstrates our commitment to the strategic growth of our business and deepening our relationships with customers.” (See CSX Corp stock analysis on TipRanks)
Foote added, “Our new partnership will provide chemical producers and shippers with a first-of-its-kind multimodal solution that capitalizes on the powerful synergies between Quality Carriers’ truck transportation fleet and our cost-advantaged rail network.”
On April 21, RBC Capital analyst Walter Spracklin reiterated a Buy rating on the stock and increased the price target to $108 (8.4% upside potential) from $100.
Spracklin noted CSX’s Q1 performance as “mixed” with earnings “light” compared to estimates. Nonetheless, the analyst continues to favor CSX owing to its robust operating model amongst an increase in volume and related volatility.
Consensus among analysts is that CSX is a Strong Buy based on 10 Buys and 3 Holds. The average analyst price target of $107.46 implies 7.8% upside potential. Shares have gained about 55.3% over the past year.
Related News:
Amazon Expanding In Louisiana With Robotics Fulfillment Center
Luminar Partners With Toyota’s Pony.ai To Enhance Safe Autonomous Driving
Dish Network Taps Debt Market To Raise $1.25B For Broadcast Unit
