What changed
$CNI — WATCHLIST 📊 | 6 MONTHS THESIS
🎯 latest | Rev $2.6B | EPS $1.80 vs $1.81 🔴
💡 Consensus assumes flat carloads amid economic softness, pricing moderation, and mix headwinds. Our variant view expects sequential volume acceleration driven by grain and intermodal, combined with share buybacks, allowing CNI to beat low-balled H2 estimates.
📉 Reward/risk: 2.0:1
🏢 Business Quality: 8/10 - North American Class I railroad with wide moat, essential infrastructure, high barriers to entry, consistent margins, and dedicated shareholder returns.
📊 Valuation: fair - P/E ~16.5x on TTM, EV/EBITDA ~11x, FCF yield ~5%. At the lower end of historical ranges (15–20x P/E) but not cheap given mid-cycle...
🔮 Catalyst: Sequential quarterly volume improvement and improving RTM growth
💰 Entry: $115.0, stop $105.0, target $135.0
📊 Our read: WATCHLIST. Full analysis →
https://stockduty.xyz/s/CNI0614