CNI Stock Forecast & Price Target

Canadian National Railway reported a modest increase in earnings per share (EPS) of 1% year-over-year, reaching $1.87, in line with consensus estimates, reflecting stable financial performance. Notably, management indicated that recent investments and efficiency measures have led to a significant 11% year-over-year improvement in labor productivity, which is expected to enhance operational efficiency moving forward. Furthermore, the company anticipates a 5% increase in grain and fertilizer revenue for 2025, which positions Canadian National Railway favorably against government forecasts predicting a decline in Canadian grain production, suggesting resilience and growth potential in its core segments.

Canadian National Railway's year-to-date earnings per share (EPS) growth of 4% significantly lags management's prior guidance of 10% to 15%, leading to a downward revision in forecasts. Furthermore, uncertainty regarding trade policies exacerbates concerns about the company's future performance and revenue stability. These factors contribute to a generally negative outlook for the stock, as indicated by a reduction in future EPS estimates.