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Canadian National Railway: Hold Rating Amid Economic Uncertainty and Strategic Adjustments

Canadian National Railway: Hold Rating Amid Economic Uncertainty and Strategic Adjustments

Benchmark Co. analyst Nathan Martin has maintained their neutral stance on CNI stock, giving a Hold rating today.

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Nathan Martin has given his Hold rating due to a combination of factors impacting Canadian National Railway’s outlook. The company reported second-quarter earnings per share that were in line with expectations, but management expressed concerns about increasing uncertainty related to tariffs, trade, and the broader economic environment. These factors have led to a downward revision in the company’s full-year earnings growth target, now expected to be in the mid- to high-single digits, compared to a previous target of 10%-15%.
Despite these challenges, Canadian National Railway is taking steps to manage its resources and improve efficiency, which includes aligning its operations with current volumes and reducing costs. While there are some positive growth opportunities specific to the company, such as improvements in certain merchandise categories and coal shipments, other areas like auto volumes and forest products face pressure due to tariffs and a slower housing recovery. These mixed factors contribute to the Hold rating, reflecting a cautious but stable outlook for the company’s stock.

In another report released today, J.P. Morgan also downgraded the stock to a Hold with a C$154.00 price target.

Based on the recent corporate insider activity of 37 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.

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