CNI Stock Forecast & Price Target

Canadian National Railway's strong financial outlook is supported by its diverse revenue streams, with significant contributions from petroleum and chemicals (20%), grain and fertilizers (20%), and intermodal containers (22%), among other segments. The company anticipates growth in petroleum and chemicals, driven by specific initiatives and an improving market environment, leading to margin improvements in 2025. Additionally, a recent 5% sequential increase in volumes and ongoing improvements in operational efficiencies position CN favorably to capitalize on rising demand and pricing dynamics in the latter half of the fiscal year.

The financial outlook for Canadian National Railway is negatively affected by several factors, including a 3% decline in quarterly revenues attributed to operational disruptions such as a two-week port strike and adverse weather conditions. The company is facing anticipated volume decreases in critical segments, with automotive shipments down 9% in Q4 and intermodal volumes also declining, reflecting broader market stresses and production forecast reductions. Additional risks arise from the potential for severe weather impacting agricultural outputs and network efficiency, as well as unfavorable currency fluctuations and economic volatility that could hinder growth in key regions.