CNI Stock Forecast & Price Target

Canadian National Railway reported a modest year-over-year increase in earnings per share (EPS) for 2024, at $1.87, reflecting effective alignment with market expectations despite the broader economic context. The strong revenue composition, with significant contributions from intermodal containers, petroleum and chemicals, and grain and fertilizers, highlights the company's diversified operations and resilience in various sectors. Additionally, management's focus on recent investments and labor productivity improvements, which rose by 11% year-over-year, underscores a commitment to enhancing operational efficiency and long-term growth potential.

Canadian National Railway's year-to-date earnings per share (EPS) growth of 4% significantly lags behind management’s prior guidance of 10% to 15%, raising concerns about the company's operational momentum. Additionally, the guidance cut stems from an uncertain trade policy outlook, which could further impact revenue stability in key sectors such as intermodal containers and petroleum. These factors contribute to a negative outlook, as the reduced performance expectations suggest potential challenges in meeting long-term growth targets.