Benchmark Co. analyst Nathan Martin has maintained their neutral stance on CNI stock, giving a Hold rating on January 31.
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Nathan Martin’s rating is based on Canadian National Railway’s recent financial performance and future outlook. The company reported lower-than-expected earnings for the fourth quarter, primarily due to increased operating expenses, which influenced the Hold rating. Although Canadian National Railway has set ambitious growth targets for the upcoming years, including a 10%-15% year-over-year EPS growth for 2025, these projections rely heavily on the realization of several company-specific initiatives and recovery from previous labor disruptions.
Furthermore, the company’s future performance is contingent on modest economic growth and improvements in revenue ton miles (RTMs), which carry inherent uncertainties. There are also mixed indicators within different segments of their business, such as expected flat or negative growth in some areas like autos and metals. Meanwhile, other segments like petroleum products and chemicals show potential for growth. These mixed prospects and the current financial challenges contribute to a cautious outlook, warranting the Hold rating.
According to TipRanks, Martin is a 5-star analyst with an average return of 20.3% and a 59.09% success rate. Martin covers the Basic Materials sector, focusing on stocks such as Suncoke Energy, Arch Resources, and Alpha Metallurgical Resources.
In another report released on January 31, Bank of America Securities also reiterated a Hold rating on the stock with a $112.00 price target.