CSX’s (NYSE:CSX) Intermodal Units rose from around 2.67 million units in 2019 to about 2.72 million in 2020. Trefis expects the metric to rise further to around 3.1 million in 2021 and 3.3 million in 2022.
Intermodal refers to flexible transportation of freight over highway, rail, and water without being removed from the original trailer.
Freight demand has historically been correlated to U.S. GDP, and with the U.S. economy slated to see a strong recovery following the Covid-19 lockdowns, CSX should also see demand rise.
We don’t think the projected growth is priced into CSX stock just yet. We value CSX at about $36 per share, about 20% ahead of the current market price.