Benchmark Co. analyst Nathan Martin has maintained their neutral stance on CNI stock, giving a Hold rating on May 2.
Nathan Martin has given his Hold rating due to a combination of factors influencing Canadian National Railway’s current and future performance. Despite the company exceeding earnings expectations for the first quarter, there are concerns about the potential impact of economic uncertainties, including heightened recessionary risks and currency fluctuations, which could affect earnings growth. The company has maintained its full-year EPS growth target, but achieving this will require overcoming challenges such as blank sailings affecting international intermodal volumes and the need for favorable foreign exchange rates.
Additionally, while the company anticipates strong volume growth in the second half of the year, it must navigate through various sector-specific challenges. These include potential pullbacks in intermodal growth due to increased blank sailings and mixed performance in bulk commodities like grain and coal. Furthermore, the outlook for merchandise is cautious, with declines expected in metals and minerals, although some growth is anticipated in chemicals and plastics. These mixed signals contribute to the Hold rating, as the company faces both opportunities and challenges in the current economic landscape.
Based on the recent corporate insider activity of 36 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CNI in relation to earlier this year.