Canadian National Railway price target lowered to $121 by Citi on macro headwinds

Investing.com - Citi has lowered its price target on Canadian National Railway (TSX:CNR) (NYSE:CNI) to $121.00 from $123.00 while maintaining a Buy rating following the company’s second-quarter earnings report. With a market capitalization of $63 billion and trading near its 52-week low, InvestingPro analysis suggests the stock is currently undervalued.

The railroad operator reported adjusted earnings per share of C$1.87, up 1% year-over-year but missing both Citi’s estimate of C$1.92 and the consensus estimate of C$1.88.

Canadian National Railway cited a challenging and uncertain macroeconomic environment, with shifting U.S. tariff policies creating headwinds affecting North American supply chains.

The company has cut its 2025 earnings per share outlook to mid- to high-single-digit year-over-year growth, down from its previous forecast of 10-15% growth, and has withdrawn its multi-year EPS guidance through 2026.

Despite these challenges, Citi noted that CNI shares fell only 1% in after-hours trading following the earnings miss and reduced outlook, suggesting investors already had low expectations for the company that has struggled to grow volumes and earnings for several years.

In other recent news, Canadian National Railway reported several key developments that have caught the attention of investors. The company announced a quarterly dividend of C$0.8875 per share for the third quarter of 2025, payable on September 29, 2025, to shareholders of record as of September 8, 2025. Additionally, Canadian National Railway appointed Janet Drysdale as interim Chief Commercial Officer, following the departure of Remi G. Lalonde. Drysdale brings nearly 30 years of experience within the company, having held various executive roles.

Analysts have shown mixed reactions to Canadian National Railway’s recent performance. National Bank Financial downgraded the stock from Outperform to Sector Perform, citing limited reasons for significant short-to-midterm stock movement and adjusting the price target to C$150.00. Similarly, JPMorgan downgraded the stock from Overweight to Neutral, lowering the price target to C$154.00 due to the company’s inability to recover from disruptions in 2024. Conversely, Raymond (NSE:RYMD) James upgraded the stock from Market Perform to Outperform, raising the price target to C$162.00 based on improved business prospects. These recent developments highlight the varied outlooks from analysts regarding Canadian National Railway’s future performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.