What changed
$CNI — ADD 📊 | 6 MONTHS THESIS
🎯 latest | Rev $2.6B | EPS $1.80 vs $1.81 🔴
💡 Consensus expects flattish EPS growth following the miss, but our variant view sees 5–7% upside to FY2024 estimates as grain and intermodal volumes rebound and cost control keeps the operating ratio near 57%, driving a re-rating from the current ~15.8x P/E toward a historical norm of 17–18x.
📉 Reward/risk: 1.33:1
🏢 Business Quality: 9/10 - Best-in-class North American railroad with a unique three-coast network, strong pricing power, and a track record of superior margins and returns on invested capital.
📊 Valuation: fair — P/E 15.8x vs 5-year average 17.5x; EV/EBITDA 11.2x vs peers at 11.8x; DCF implies fair value $120–130 assuming 3% revenue growth and stable...
🔮 Catalyst: Q2 2024 earnings report (July 2024)
📊 Our read: ADD. Full analysis →
https://stockduty.xyz/s/CNI0618