CIBC Raises CNI Price Target to C$146 While Keeping Neutral Rating

Core Insights - Canadian National Railway Company (CNI) is recognized as one of the 13 Best Canadian Dividend Stocks for long-term investment [1] - CIBC has raised the price target for CNI to C$146 from C$140 while maintaining a Neutral rating [2] - CNI reported a 6% increase in adjusted earnings per share for the third quarter and improved its operating ratio by 170 basis points to 61.4% [3] Financial Performance - CNI's third-quarter results showed resilience despite a challenging macroeconomic environment [3] - The company has maintained top-tier margins and strong operational performance, even though it fell short of volume expectations over the past two years [3] Capital Expenditure and Cost Management - Management plans to reduce capital spending from C$3.35 billion in 2025 to C$2.8 billion in 2026, aligning spending with US peers [4] - The reduction in capital spending is attributed to the completion of major capacity expansion projects and upgrades to the locomotive fleet, rather than a slowdown in growth investments [4] - CNI aims to cut management labor costs by C$75 million and accelerate share repurchases to leverage attractive valuations [4] Company Overview - CNI operates the largest rail network in Canada and provides transportation and logistics services across the United States and Mexico [5]