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CSX shares rise as Susquehanna lifts rating on intermodal rail strength

Susquehanna Financial Group has upgraded US rail operator CSX, citing strong intermodal freight volumes. The move has drawn attention from UK investors with exposure to North American transport stocks.

  • Susquehanna upgraded CSX from Neutral to Positive on intermodal growth.
  • CSX shares gained 1.8% in pre-market trading following the upgrade.
  • Intermodal volumes have risen 6% year-on-year, driven by e-commerce and reshoring trends.

CSX Corporation, one of the largest freight rail operators in the United States, received a ratings upgrade from Susquehanna Financial Group on Friday, lifting its stock in pre-market trading. The upgrade, from Neutral to Positive, was driven by the company's improving intermodal segment, which has benefited from rising e-commerce demand and supply chain reshoring.

The upgrade comes as CSX reported a 6% year-on-year increase in intermodal volumes for the second quarter of 2026. Analysts at Susquehanna noted that the company's network efficiency and cost controls are supporting margins, even as broader economic uncertainty persists. CSX shares rose approximately 1.8% in pre-market activity on the New York Stock Exchange.

For UK investors, the development is relevant because CSX is held in several global equity funds and exchange-traded funds (ETFs) popular with British pension schemes. The FTSE 100 was trading flat on Friday morning, but transport and logistics stocks on both sides of the Atlantic have been volatile amid shifting trade policies and fuel costs.

Intermodal freight — the movement of goods using multiple transport modes such as rail and truck — has become a key growth area for US railroads. Analysts at Susquehanna said they expect the trend to continue, supported by warehouse restocking and a shift away from long-haul trucking in favour of more fuel-efficient rail transport.

Broader market context: the Dow Jones Industrial Average was up 0.3% in early trading, while the S&P 500 remained near its July highs. In London, the FTSE 250 was marginally lower, with transport-related stocks such as Ashtead and Bunzl seeing modest gains.

Why this matters: UK pension funds and investment trusts hold significant positions in US rail and logistics companies. A sustained upgrade for CSX could signal broader confidence in the global freight sector, which affects supply chain costs and inflation trends.

What this means for you: What this means for you: If your pension or ISA includes global equity funds, the upgrade signals that US rail stocks are seen as a relatively safe bet amid economic uncertainty. However, rail stocks remain sensitive to fuel prices and trade policy changes.

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