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Deutsche Bank upgrades CSX to buy, says rail stock could rally more than 20% by year-end

CSX Locomotives in Framingham, Ma. yard
Richard Berkowitz | Getty Images

A Deutsche Bank analyst changed his mind about CSX, upgrading the stock to buy from hold on Tuesday and citing the benefits of a potential management shakeup.

"The revision follows our recent discussion with Mantle Ridge CEO Paul Hilal, regarding the likely timing of potential operational initiatives," equity analyst Amit Mehrotra wrote in a research note that reversed his assessment from a month ago .

Shares of the railroad are up 32 percent since mid-January, when Hunter Harrison stepped down as CEO of Canadian Pacific Railway six months ahead of schedule to team up with activist investor Hilal and force changes at CSX. They are expected to push for an executive role for Harrison, a respected industry executive with a reputation for cost-cutting, according to reports.