Bank of America Upgrades Canadian National Railway (NYSE:CNI) to "Buy"

Key Points

• Bank of America upgraded Canadian National Railway from "neutral" to buy and raised its price target to $122, implying roughly a 13.2% upside from the current price.
• Analyst coverage is mixed—ten analysts rate CNI a Buy and ten rate it a Hold—resulting in a consensus "Moderate Buy" and an average price target of $118.76.
• In the latest quarter CN reported EPS of $1.49 (beating estimates by $0.06) but missed on revenue with $3.24 billion versus ~ $4.43 billion expected; the stock trades at a P/E of about 19.8 and a market cap near $65.9B.

Canadian National Railway (NYSE:CNI - Get Free Report) TSE: CNR was upgraded by research analysts at Bank of America from a "neutral" rating to a "buy" rating in a research note issued to investors on Thursday,Benzinga reports. The firm currently has a $122.00 price target on the transportation company's stock, up from their previous price target of $117.00. Bank of America's price objective points to a potential upside of 13.24% from the company's current price.

Several other research firms have also issued reports on CNI. Evercore decreased their target price on Canadian National Railway from $105.00 to $103.00 and set an "in-line" rating for the company in a research report on Monday, February 2nd. Barclays boosted their price objective on Canadian National Railway from $97.00 to $98.00 and gave the company an "equal weight" rating in a research report on Friday, March 27th. BMO Capital Markets reiterated an "outperform" rating on shares of Canadian National Railway in a research report on Monday, February 2nd. Sanford C. Bernstein boosted their price objective on Canadian National Railway from $113.88 to $117.36 and gave the company a "market perform" rating in a research report on Tuesday, March 31st. Finally, Stephens decreased their price objective on Canadian National Railway from $105.00 to $100.00 and set an "equal weight" rating for the company in a research report on Monday, February 2nd. Ten research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $118.76.

Canadian National Railway Price Performance

Canadian National Railway stock opened at $107.74 on Thursday. The firm has a market capitalization of $65.85 billion, a P/E ratio of 19.84, a PEG ratio of 2.17 and a beta of 0.91. Canadian National Railway has a 1 year low of $90.74 and a 1 year high of $113.08. The business has a 50-day moving average of $104.90 and a 200-day moving average of $99.47. The company has a current ratio of 0.67, a quick ratio of 0.47 and a debt-to-equity ratio of 0.94.

Canadian National Railway (NYSE:CNI - Get Free Report) TSE: CNR last posted its earnings results on Friday, January 30th. The transportation company reported $1.49 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.43 by $0.06. The company had revenue of $3.24 billion during the quarter, compared to analyst estimates of $4.43 billion. Canadian National Railway had a return on equity of 22.14% and a net margin of 27.28%.The company's revenue for the quarter was up 2.4% compared to the same quarter last year. During the same period in the previous year, the company earned $1.82 EPS. On average, equities analysts anticipate that Canadian National Railway will post 5.52 EPS for the current year.

Hedge Funds Weigh In On Canadian National Railway

Large investors have recently bought and sold shares of the company. High Point Wealth Management LLC acquired a new position in Canadian National Railway during the 4th quarter worth approximately $27,000. Hollencrest Capital Management acquired a new position in Canadian National Railway during the 3rd quarter worth approximately $28,000. MidFirst Bank acquired a new position in Canadian National Railway during the 4th quarter worth approximately $31,000. Curio Wealth LLC acquired a new position in Canadian National Railway during the 4th quarter worth approximately $31,000. Finally, First Horizon Corp acquired a new position in Canadian National Railway during the 3rd quarter worth approximately $30,000. Institutional investors and hedge funds own 80.74% of the company's stock.

Canadian National Railway Company Profile

Canadian National Railway Company NYSE: CNI is a Class I freight railway that operates an integrated rail network across Canada and the United States. Headquartered in Montreal, Quebec, CN provides long-haul freight transportation and related logistics services that connect major ports, industrial centers and inland markets throughout North America. Its transcontinental system enables cross-border movement of goods and supports supply chains that span coast-to-coast in Canada and into the central and eastern United States.

CN's core business is the railborne transportation of a broad mix of commodities, including intermodal container traffic, forest and paper products, grain and other agricultural products, metallurgical and industrial products, petroleum and chemical products, coal and automotive shipments.

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