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Investing.com - Raymond (NSE:RYMD) James upgraded Canadian National Railway (TSX:CNR) (NYSE:CNI) from Market Perform to Outperform on Thursday, while raising its price target to C$162.00 from C$150.00.
The upgrade reflects Raymond James’ more positive outlook on the railway operator, with the firm adjusting its valuation metrics to account for improved business prospects.
Raymond James based its new C$162.00 target price on an 18.5x price-to-earnings multiple applied to its 2026 earnings estimate, up from the previous 17.25x multiple.
The new valuation multiple sits near the mid-point of Canadian National Railway’s five-year trading range of 15.8x to 25.5x earnings.
Raymond James indicated that the revised multiple is reflective of the current macroeconomic outlook, suggesting improved confidence in the railway’s performance potential.
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