CNI Stock Forecast & Price Target

Canadian National Railway demonstrated solid financial performance in 2024, generating CAD 17 billion in revenue from diverse segments, including intermodal containers, petroleum and chemicals, and grain and fertilizers, which together represented 62% of total revenue. The company's earnings per share (EPS) remained stable at $1.87, reflecting a 1% year-over-year increase and alignment with market expectations, suggesting consistent profitability. Furthermore, management's focus on productivity improvements, evidenced by an 11% increase in labor productivity, indicates a strategic position for enhanced operational efficiency and future growth potential.

Canadian National Railway's year-to-date earnings per share (EPS) growth of 4% fell significantly short of management's prior guidance of 10% to 15%, leading to a downward revision of future guidance amidst an uncertain trade policy outlook. This lack of expected financial performance coupled with reduced EPS estimates raises concerns about the company's growth trajectory and adaptability in a challenging economic environment. Additionally, the uncertain trade dynamics could further inhibit revenue generation across its diverse freight segments, ultimately undermining investor confidence.