What changed
$CNI — BUY 📊 | 6 MONTHS THESIS
🎯 latest | Rev $2.6B | EPS $1.80 vs $1.81 🔴
💡 Consensus expects flat earnings growth due to macro uncertainty, but we see mid-single-digit volume growth and pricing gains leading to EPS upside to $7.50+ in FY2025, implying multiple expansion to 18-20x.
📉 Reward/risk: 2.56:1
🏢 Business Quality: 9/10 - Dominant Canadian rail network with wide moat, high barriers to entry, and stable cash flows; among the best-in-class operating ratios.
📊 Valuation: cheap - P/E 15.8x (annualized Q1 EPS) vs 5-year average 19.5x; EV/EBITDA 12.5x vs peer average 14x; FCF yield >5%.
🔮 Catalyst: Q2 2025 volume recovery and analyst revisions upward as grain and intermodal demand pick up; also potential buyback acceleration
💰 Entry: $113.43, stop $105, target $135
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/CNI0620