SIG analyst Bascome Majors maintains $Canadian National Railway (CNI.US)$ with a hold rating, and adjusts the target price from $125 to $115.
According to TipRanks data, the analyst has a success rate of 61.7% and a total average return of 10.5% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Canadian National Railway (CNI.US)$'s main analysts recently are as follows:
Canadian National witnessed a decline of about 3.2% in revenue-ton-miles year-over-year in Q4, a drop which was more significant than the previously estimated 2.3%. Consequently, there was a reduction in the earnings projections for Q4, along with downward adjustments for the years 2024 and 2025.
The stock is noted to be trading at a significant discount compared to peers like Union Pacific, with analyst highlighting that easy volume comparisons and favorable currency conditions are likely to bolster its earnings growth outlook for 2025 more than its counterparts. The firm emphasized that these advantages for CN are particularly notable as the market's gradual recovery could pose risks to the robust earnings growth projected for 2025.
Looking ahead into Q4 results and 2025 outlooks, the sentiment is to favor the early cycle. There are indications that volume may expand to include improved industrial freight. While near-term expectations are adjusting, the underlying fundamentals are showing a positive trend.
Note:
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