Canadian National Railway, the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Fadi Chamoun from BMO Capital maintained a Buy rating on the stock and has a C$155.00 price target.
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Fadi Chamoun has given his Buy rating due to a combination of factors that highlight the potential for Canadian National Railway’s future growth. Despite current challenges with softer volume trends and mix headwinds, the company’s valuation is at its lowest in over a decade, presenting a compelling investment opportunity. Chamoun anticipates that if the freight cycle improves by 2026, the company’s earnings per share (EPS) growth could re-accelerate, making it an attractive prospect for investors.
Moreover, the outlook for bulk shipments appears promising, with expectations of a recovery in demand for frac sands and an upward revision in Canadian crop forecasts. Chamoun also notes that Canadian National Railway operates one of the strongest franchises in the rail industry, with improved operational performance positioning the company to enhance margins and EPS growth. These factors collectively underpin Chamoun’s optimistic Buy rating for the stock.
Based on the recent corporate insider activity of 40 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.