Zacks Investment Research Upgrades Canadian National Railway (NYSE:CNI) to Hold

Canadian National Railway (NYSE:CNI) (TSE:CNR) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued to clients and investors on Thursday, January 4th.

According to Zacks, “Canadian National Railway Company's fourth-quarter results should benefit from volume growth at its key units like Overseas Intermodal, Frac sand, Coal and Petroleum coke exports, and Canadian grain. Rail freight revenues should also rise substantially in the quarter. The company's efforts to reward shareholders through dividend payments and share buybacks are also impressive. Additionally, the $2.6 billion capital plan announced by the company in April 2017 is aslo encouraging. However, high high fuel costs might hurt the company's fourth-quarter results as well. Deterioration in operating ratio is also a matter of concern. Declining revenues at the forest products, and grain and fertilizers segment might hurt the top line going forward. The company's high debt levels further adds to its woes. In fact, shares of the company have underperformed its industry over the last three months.”

Several other analysts have also issued reports on the stock. Goldman Sachs Group initiated coverage on shares of Canadian National Railway in a research report on Monday, November 13th. They set a “buy” rating and a $85.00 price target on the stock. Desjardins raised shares of Canadian National Railway from a “hold” rating to a “buy” rating in a research report on Wednesday, October 25th. Raymond James Financial downgraded shares of Canadian National Railway from an “outperform” rating to a “market perform” rating in a research note on Wednesday, October 25th. Deutsche Bank initiated coverage on shares of Canadian National Railway in a research note on Wednesday, November 1st. They issued a “sell” rating and a $73.00 price target on the stock. Finally, CIBC upgraded shares of Canadian National Railway from a “neutral” rating to a “sector outperform” rating in a research note on Wednesday, November 8th. One research analyst has rated the stock with a sell rating, nine have assigned a hold rating and eight have issued a buy rating to the company. The stock currently has a consensus rating of “Hold” and a consensus target price of $79.67.

Shares of Canadian National Railway (NYSE:CNI) opened at $79.90 on Thursday. The company has a debt-to-equity ratio of 0.58, a quick ratio of 0.49 and a current ratio of 0.61. The firm has a market cap of $59,320.00, a P/E ratio of 19.49, a P/E/G ratio of 2.00 and a beta of 1.09. Canadian National Railway has a 12 month low of $68.27 and a 12 month high of $85.73.

Canadian National Railway (NYSE:CNI) (TSE:CNR) last issued its quarterly earnings data on Tuesday, October 24th. The transportation company reported $1.05 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $1.06 by ($0.01). The firm had revenue of $2.58 billion for the quarter, compared to analyst estimates of $2.62 billion. Canadian National Railway had a net margin of 29.98% and a return on equity of 25.57%. analysts predict that Canadian National Railway will post 3.96 EPS for the current year.

Canadian National Railway announced that its board has approved a share buyback program on Tuesday, October 24th that allows the company to buyback 31,000,000 outstanding shares. This buyback authorization allows the transportation company to purchase shares of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s board of directors believes its stock is undervalued.

Institutional investors have recently made changes to their positions in the stock. Hendershot Investments Inc. increased its position in shares of Canadian National Railway by 0.8% during the fourth quarter. Hendershot Investments Inc. now owns 120,940 shares of the transportation company’s stock valued at $9,978,000 after buying an additional 955 shares during the period. Smithbridge Asset Management Inc. DE increased its position in shares of Canadian National Railway by 3.8% during the fourth quarter. Smithbridge Asset Management Inc. DE now owns 29,535 shares of the transportation company’s stock valued at $2,437,000 after buying an additional 1,080 shares during the period. Fox Run Management L.L.C. grew its holdings in shares of Canadian National Railway by 125.6% during the fourth quarter. Fox Run Management L.L.C. now owns 14,891 shares of the transportation company’s stock worth $1,229,000 after purchasing an additional 8,291 shares in the last quarter. Creative Planning grew its holdings in shares of Canadian National Railway by 14.9% during the fourth quarter. Creative Planning now owns 15,685 shares of the transportation company’s stock worth $1,294,000 after purchasing an additional 2,038 shares in the last quarter. Finally, Atria Investments LLC grew its holdings in shares of Canadian National Railway by 15.3% during the fourth quarter. Atria Investments LLC now owns 5,356 shares of the transportation company’s stock worth $442,000 after purchasing an additional 710 shares in the last quarter. Institutional investors and hedge funds own 53.42% of the company’s stock.

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Canadian National Railway Company Profile

Canadian National Railway Company 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 and serving the cities and ports of Vancouver, Prince Rupert (British Columbia), Montreal, Halifax, New Orleans, and Mobile (Alabama), and the metropolitan areas of Toronto, Edmonton, Winnipeg, Calgary, Chicago, Memphis, Detroit, Duluth (Minnesota)/Superior (Wisconsin), and Jackson (Mississippi), with connections to all points in North America.

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Analyst Recommendations for Canadian National Railway (NYSE:CNI)

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