TD Cowen analyst Cherilyn Radbourne maintained a Buy rating on Canadian National Railway today and set a price target of C$171.00.
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Cherilyn Radbourne has given his Buy rating due to a combination of factors tied to both valuation and operating performance. He views the roughly 6% pullback in the share price as excessive relative to a modest EBIT shortfall, especially when the company’s earnings were essentially in line with expectations and the overall valuation appears reasonable on both an absolute and relative basis.
Radbourne also highlights that the railway’s operating metrics and commercial momentum are strong, with record fuel efficiency, improved asset utilization, and tangible cost savings already emerging from a terminal review initiative. In addition, renewed sales efforts are driving incremental revenue and positioning the company to benefit from sustained strength in energy-related volumes, supporting an outlook that he believes is not fully reflected in the current share price.
Based on the recent corporate insider activity of 32 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CNI in relation to earlier this year.