A "BNSF-CSX combination would create a rival transcontinental network, effectively reshaping the U.S. rail industry into a duopoly," Moore, who has a $40 price target on CSX, added.

Union Pacific this morning confirmed that they are, in fact in talks with Norfolk Southern.

Operational efficiency under CEO Jim Vena has driven record results, with improved productivity, cost control, and industry-leading operating ratios.