RBC Capital Markets has adjusted the target price of Canadian National Railway (CNI.US), lowering it from CAD 158 to CAD 153, while maintaining its "Outperform" rating. This revision forms part of a broader report issued by the institution, which offers insights into the fourth-quarter performance prospects of leading railroad companies. RBC indicated that it updated its models by integrating the latest freight volume trends, management comments from meetings, and findings from its own channel research.
Uncertainties in Canada-U.S. trade have dimmed market prospects. Against this backdrop, Canadian National Railway has downgraded its 2025 performance expectations and abandoned its original outlook for 2026. Management had initially projected that adjusted earnings for 2025 would grow by 10% to 15% year-over-year. Current forecasts suggest that earnings growth will remain positive but may fall short of the 10% target.
Investors may need to exercise patience, as the company’s long-term growth prospects remain appealing. Canadian National Railway benefits from sustained economic growth and expanding trade volumes in North America. Its scale, network density, and stable profitability make it a high-quality enterprise capable of withstanding multiple economic cycles.
The company boasts strong profitability and operates a rail network that is hard to replicate. Its routes connect Canada’s Atlantic and Pacific ports to the U.S. Gulf Coast, securing a strategic position in North American trade corridors.
In the future, Canada and the United States will establish a new trade framework. At that point, Canadian National Railway is expected to gain fresh momentum for development.
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