UPDATE: National Bank Financial Raises PT on Canadian National Railway Ahead of Q3 Earnings
National Bank Financial Maintains reiterated its Sector Perform rating on Canadian National Railway (NYSE: CNI) but raised its price target from $88 to $89.
Financial Maintains Canadian noted, "[K]ey economic indicators, some volumes, other industry participants and even CN management itself are suggesting a slowdown in growth for the rails. CN shares are currently trading at 13.8x our 2013 earnings forecast, which is in line with the long-term average forward multiple of 14x. Given the economic uncertainty, we don't believe that CN shares should be trading at a premium valuation to historical levels, hence our Sector Perform rating."
Canadian National Railway closed at $88.84 on Tuesday.
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