What changed
$CNI — BUY 📊 | 6 MONTHS THESIS
🎯 latest | Rev $2.6B | EPS $1.80 vs $1.81 🔴
💡 Consensus expects flat 2-3% EPS growth due to macro jitters, but CNI's operational efficiency and intermodal recovery should drive 5-7% growth with margin improvement, enabling P/E re-rating from 16x toward 18x.
📉 Reward/risk: 2.3:1
🏢 Business Quality: 9/10 - Dominant Canadian rail franchise with irreplaceable assets, high barriers, and strong FCF generation; operating ratio consistently among best-in-class at sub-60%.
📊 Valuation: fair - P/E 16.3x (5% discount to CP/UNP), EV/EBITDA 14.1x (in-line with 5-year avg), FCF yield 3.2%; fair today but cheap if volumes recover as...
🔮 Catalyst: Q2 2025 earnings report + improving macroeconomic data
💰 Entry: $117.475, stop $110, target $135
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/CNI0615