Weekly Analysts’ Ratings Changes for Canadian National Railway (CNI)
A number of firms have modified their ratings and price targets on shares of Canadian National Railway (NYSE: CNI) recently:
- 10/11/2016 – Canadian National Railway is now covered by analysts at Vertical Research. They set a “hold” rating on the stock.
- 10/8/2016 – Canadian National Railway had its “hold” rating reaffirmed by analysts at TD Securities. They now have a $90.00 price target on the stock.
- 10/2/2016 – Canadian National Railway had its “sector perform” rating reaffirmed by analysts at Scotiabank. They now have a $87.00 price target on the stock.
- 9/26/2016 – Canadian National Railway is now covered by analysts at Loop Capital. They set a “hold” rating and a $64.00 price target on the stock. They wrote, “With the railroad operating ratio falling from 89 percent at the time of the IPO to ~56 percent this year, and with pricing continuing to outpace productivity-adjusted cost inflation, it’s only a matter of time before management will be forced to choose whether or not to cross the 50 percent Rubicon, triggering greater regulatory scrutiny including possible re-regulation,” analyst Rick Paterson wrote in a note.Paterson said the business should remain “somewhat stagnant” in to 2017 due to weak energy markets and lower demand from industries. However, grain and intermodal are the two bright spots in otherwise dull story.Related Link: The Week In Rails: Carloads For The Big 6The analyst expects the company’s intermodal volumes in 2017 to be positive versus year-to-date decline of 2.2 percent in 2016. In terms of materiality, intermodal and agriculture combined represent 40 percent of total year-to-date sales at Canadian National.Meanwhile, pricing is inflating faster than costs and the analyst expects 2017 core pricing to be in the low- to mid-2 percent range. In fact, the Canadian Transportation Agency, in formulating its latest grain cap projects the company’s (and Canadian Pacific Railway Limited (USA) (NYSE: CP)’s) wage and benefits inflation in 2016/2017 projected to be 1.4 percent, materials inflation of 1.5 percent, and other non-fuel items up 1.2 percent. “So the margin story isn’t, quite, over for CN, and if we factor in some headwind from likely higher fuel prices in 2017 we still come up with a 60 basis point improvement in the operating ratio to 55.1 percent and EPS a little over $5/share,”
- 9/13/2016 – Canadian National Railway had its price target raised by analysts at Citigroup Inc. from $61.00 to $66.00. They now have a “neutral” rating on the stock.
- 9/12/2016 – Canadian National Railway had its price target raised by analysts at Barclays PLC from $65.00 to $68.00. They now have an “equal weight” rating on the stock.
Canadian National Railway Co. (NYSE:CNI) traded down 0.53% during trading on Wednesday, reaching $66.23. The company had a trading volume of 567,308 shares. The stock has a market cap of $51.10 billion, a PE ratio of 19.30 and a beta of 1.10. The company has a 50-day moving average price of $64.58 and a 200 day moving average price of $61.99. Canadian National Railway Co. has a 52-week low of $46.23 and a 52-week high of $67.66.
Canadian National Railway (NYSE:CNI) last issued its quarterly earnings results on Monday, July 25th. The company reported $1.11 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.09 by $0.02. The firm earned $2.84 billion during the quarter, compared to analyst estimates of $3 billion. Canadian National Railway had a return on equity of 24.13% and a net margin of 29.55%. The firm’s quarterly revenue was down 9.1% on a year-over-year basis. During the same period last year, the company posted $1.15 EPS. On average, analysts anticipate that Canadian National Railway Co. will post $3.41 earnings per share for the current year.
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The company also recently declared a dividend, which was paid on Friday, September 30th. Shareholders of record on Friday, September 9th were paid a dividend of $0.288 per share. The ex-dividend date was Wednesday, September 7th. Canadian National Railway’s payout ratio is currently 33.43%.
Canadian National Railway Co is engaged in the rail and related transportation business. The Company’s network of approximately 20,000 route miles of track spans Canada and mid-America, connecting approximately three coasts, including the Atlantic, the Pacific and the Gulf of Mexico. The Company’s freight includes approximately seven commodity groups, such as petroleum and chemicals, metals and minerals, forest products, coal, grain and fertilizers, intermodal and automotive.
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