UPDATE: Credit Suisse Reiterates on Canadian National Railway Ahead of Investor Day
In a report published Wednesday, Credit Suisse analyst Allison M. Landry reiterated a Neutral rating on Canadian National Railway (NYSE: CNI), and raised the price target from $100.00 to $105.00.
In the report, Credit Suisse noted, “We have raised our FY13 EPS estimate to $6.18 from $6.08. Our FY14 and FY15 EPS forecasts are $6.83 and $7.50 (from $6.63 and $7.23). Our DCF-derived 12-month target price is $105 (from $100), due to a lower discount rate and a lower share count assumption. CNI reported adj. 3Q13 EPS of $1.72, which was above our estimate and the consensus of $1.62. Revenues were ~2% higher than expected, and the O.R. was 60 bps better (59.8% vs. 60.4%). A lower adj. tax rate (27.6% vs. our 29.0%) helped EPS by ~$0.03 vs. our forecast.”
Canadian National Railway closed on Tuesday at $106.72.
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