Canadian National Railway: Strategic Initiatives and Operational Efficiencies Drive Buy Rating

Canadian National Railway (CNI – Research Report), the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Christian Wetherbee from Wells Fargo maintained a Buy rating on the stock and has a $120.00 price target.

Christian Wetherbee’s rating is based on a combination of factors that highlight Canadian National Railway’s potential for growth and operational improvements. The company has reiterated its guidance for a 10-15% year-over-year EPS growth for 2025, with volume being a crucial determinant in reaching the higher end of this range. Despite facing a modest headwind from foreign exchange fluctuations, Canadian National is committed to maintaining tight cost controls to safeguard its earnings.
Furthermore, Canadian National Railway is poised to benefit from seasonal improvements in its operating ratio, with easier comparisons expected in the latter half of the year. The company is also actively pursuing growth initiatives, such as expanding operations at the Rupert port and leveraging its Falcon Premium alliance, which are expected to contribute significantly to its volume guidance. While the company remains open to potential mergers and acquisitions, it acknowledges the high regulatory hurdles involved. These strategic initiatives and operational efficiencies underpin Wetherbee’s Buy rating for the stock.

According to TipRanks, Wetherbee is a 5-star analyst with an average return of 11.1% and a 58.05% success rate. Wetherbee covers the Industrials sector, focusing on stocks such as XPO, Norfolk Southern, and Union Pacific.

In another report released on June 10, Citi also maintained a Buy rating on the stock with a $124.00 price target.