Research Alert: CFRA Keeps Hold Opinion On Shares Of Canadian National Railway
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We raise our 12-month target price by CAD12 to CAD160, valuing CNR shares at 20x our 2026 EPS estimate of CAD7.85 (up from CAD7.64) and at 18.5x our 2027 EPS estimate of CAD8.65 (up from CAD8.45)vs. the shares' one-year average forward multiple of 18x and a peer average of 22.6x. We see revenue growth of 3% in 2026, with a rise of 4% in 2027. Q1 2026 results were mixed. Total revenues were -1% to CAD4,379M as a record Q1 RTM level of 61,834M (+3% volume) was more than offset by freight revenue per RTM (-3%). The yield pressure was primarily due to the negative translation impact of a stronger Canadian dollar and the elimination of the Canadian federal carbon tax program on April 1, 2025, which collectively overshadowed benefits from freight rate increases and higher fuel surcharge rates. On a constant currency basis, revenues would have grown 2%, demonstrating underlying business momentum. We expect some of these pressures to ease as the year progresses. We currently view the shares as fairly valued.
