How are energy investors positioned?
On Thursday, RBC Capital analysts maintained an Outperform rating for Canadian National Railway (TSX:CNR) stock, with a price target of Cdn$163.00. Currently trading at $67.80, the company has demonstrated strong revenue growth of 11.29% over the last twelve months, with analysts forecasting 93% growth for fiscal year 2025. The analysts expressed optimism about the company’s growth potential at the Prince Rupert facility, which is expected to experience significant expansion.
The report highlighted the prospects for Canadian National Railway’s Prince Rupert operations, which are currently operating at 50% capacity. The analysts foresee a potential for multi-year volume growth of 10% or more in the region, driven by bulk products, natural gas liquids, and intermodal services.
The analysts noted that the anticipated growth at Prince Rupert could lead to above-average volume increases for Canadian National Railway. They emphasized the high quality of this growth, suggesting it deserves a higher valuation multiple.
RBC Capital’s report drew inspiration from a comment by Charlie Raymond (NSE:RYMD), who described his new Ray-Mont facility as being on the brink of substantial growth. The analysts believe this sentiment applies to Canadian National Railway’s opportunities at Prince Rupert as well.
The analysts concluded that Canadian National Railway presents both a short-term tactical value opportunity and a longer-term re-rating potential, supporting their continued positive outlook on the stock.
In other recent news, Canadian National Railway Company announced the election of its board of directors during the annual shareholder meeting held online. All 11 management-nominated candidates were successfully elected, with Shauneen Bruder receiving unanimous re-election as board chair. The voting results showed overwhelming support for the nominees, with approval percentages ranging from 98.61% to 99.81%. Shauneen Bruder received 99.01% of votes in favor, while Tracy Robinson secured the highest approval with 99.81% of votes. Other directors, such as David Freeman and Al Monaco, also garnered significant support, with 99.63% and 99.62% of votes, respectively. The election results reflect a strong backing from shareholders for the company’s leadership. The detailed voting outcomes will be filed with Canadian and U.S. securities regulators. Canadian National Railway continues to play a significant role in North America’s transportation and logistics sector.
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