Canadian National Benefits From Diversified Freight Mix, According to CIBC

Core Viewpoint - Canadian National Railway Company (NYSE:CNI) is recognized for its strong operational performance and diversified freight mix, which supports stable revenue and growth potential in the long term [2][4]. Group 1: Operational Performance - CIBC analyst Kevin Chiang upgraded Canadian National's rating to Outperform from Neutral and raised the price target to C$151 from C$146, citing improved operational performance with rising volumes and car velocity [2]. - The company is expected to see strengthened free cash flow in 2026, with earnings per share projected to rise as capital spending eases [2]. Group 2: Profit Growth and Diversification - Canadian National has been expanding profits through strategic acquisitions and effective drilling programs, being a significant player in both oil and natural gas production [3]. - The diversified freight mix allows the company to maintain stable revenue across various economic conditions, generating reliable free cash flow that supports dividend increases and long-term reinvestment [4]. Group 3: Growth Potential - The company is positioned to benefit from ongoing infrastructure, manufacturing, and trade network expansions in Canada and the US, providing a long growth runway [4].