Canadian National Railway Company (NYSE: CNI) is one of the 15 Best Passive Income Stocks to Buy Right Now.
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On November 11, Bernstein raised his price target on Canadian National Railway Company (NYSE: CNI) to $109.44 from $106.47 while maintaining a Perform market rating, as reported by The Fly. The company noted that the company faced revenue pressure in the third quarter, but operating expenses and adjusted operating ratio performance remained strong. Bernstein added that a major takeaway over the past few weeks has been the growing evidence that intermodal volume realignment is starting to take hold.
In the third quarter of 2024, CEO Tracy Robinson acknowledged that the railroad had not met volume forecasts over the past two years. Despite this, she noted that Canadian National Railway Company (NYSE: CNI) has consistently generated strong operating results and maintained industry-leading margins.
Management announced plans to reduce capital spending from $3.35 billion in 2025 to $2.8 billion in 2026, which would bring capital spending back to the mid-teens as a percentage of sales, aligning the company more closely with its U.S. peers. The reduction reflects the completion of large capacity expansion projects in Western Canada and locomotive modernizations rather than a retreat from growth initiatives.
Canadian National Railway Company (NYSE: CNI) also intends to reduce management labor costs by $75 million and accelerate share buybacks, citing attractive valuation levels.
Canadian National Railway Company (NYSE: CNI) is a freight transportation company that operates the largest rail network in Canada and provides service throughout the United States and Mexico.
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