Analysts have slightly lowered their price target for Canadian National Railway from $151.33 to $150.57, citing modest adjustments to discount rates and growth expectations.

Analyst Commentary

Recent analyst discussions around Canadian National Railway reflect a generally optimistic outlook, with several factors contributing to the positive sentiment. However, some areas warrant caution as well. Below, recent takeaways are organized by bullish and bearish perspectives.

• Bullish analysts highlight stable fundamentals and resilient core operations, which continue to support long-term growth prospects and competitive positioning.
• Ongoing disciplined execution and efficiency measures are seen as enhancing profitability and helping to maintain attractive margins, even in the face of sector headwinds.
• Recent modest reductions in the price target are considered more of a technical adjustment to reflect updated discount rates rather than a fundamental concern about the company’s growth or valuation potential.
• Overall, the scale and diversification of Canadian National Railway’s portfolio remain attractive, offering shareholders a strong platform for accretive growth and returns.

• Bearish analysts are cautious about the effects of changing macroeconomic factors, particularly any shifts in interest rates, which could pressure valuation multiples.
• There is ongoing concern regarding the pace of growth, as incremental improvements may not be sufficient to justify aggressive upside in the stock price.
• Potential execution risks, such as cost management and integration of any strategic ventures, could weigh on near-term financial performance.
• Market volatility and sector-specific uncertainties, including fluctuating demand for rail services, may affect the stability of future earnings expectations.

What's in the News

• CN and CSX have signed a Memorandum of Understanding to launch a new intermodal service into Nashville, Tennessee. This service will offer customers a seamless, all-rail solution for international containers from Canada's West Coast through Memphis to Nashville, replacing the trucking segment for increased speed and sustainability (Client Announcements).
• Canadian National Railway expanded its firefighting capabilities by introducing two new specialized firefighting railcars, Oceanus and Amphitrite, each carrying 25,000 gallons of water. The railway is also piloting fire trailers for smaller wildfire responses along the right of way. Additional 30,000-gallon tank cars have been strategically placed in British Columbia to enhance wildfire preparedness (Business Expansions).
• Between April 1 and June 30, 2025, CN completed the repurchase of 2,200,000 shares, amounting to CAD 300 million. This fulfills the buyback announced in January 2025 (Buyback Tranche Update).

Valuation Changes

• Consensus Analyst Price Target has decreased slightly from CA$151.33 to CA$150.57.
• Discount Rate has fallen modestly from 7.53% to 7.52%.
• Revenue Growth estimates have declined from 4.48% to 4.38%.
• Net Profit Margin projections have edged down from 28.91% to 28.70%.
• Future P/E multiple has risen marginally from 20.31x to 20.40x.