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Avondale Cuts Estimates On Railroads... Again

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Avondale Cuts Estimates On Railroads... Again

On Friday, Avondale Partners issued a note on the railroad industry, highlighting companies including CSX Corporation (NASDAQ: CSX), Canadian National Railway (USA) (NYSE: CNI), Canadian Pacific Railway Limited (USA) (NYSE: CP), Norfolk Southern Corp. (NYSE: NSC) and Union Pacific Corporation (NYSE: UNP).

Donald Broughton, a managing director at Avondale Partners, lowered the firm's estimates on the railroad companies amid signs of weak U.S. exports due to a strong U.S. dollar, lower volumes in fracking, lower fuel surcharges and higher fixed costs in infrastructure.

Related Link: Commodity Slump Hammers Railroad Stocks

Canadian National: $80 Price Target, Rating Unavailable

"We are lowering our 1Q EPS estimate to C$0.96 from C$1.09, and further lowering our 2016 EPS estimate to C$4.69 from C$4.88."

Canadian Pacific: Market Outperform, Price Target Unavailable

"We are lowering our 1Q EPS estimate from C$2.20 to C$2.11, and increasing our 2016 EPS estimate from C$9.95 to C$10.10….We expect the risk in the current quarter to the downside as a result of macro-driven volume declines."

CSX: Downgraded To Market Underperform, $18 Price Target

"We are lowering our 1Q EPS estimate from $0.37 to $0.32, and further lowering our 2016 EPS estimate from $1.75 to $1.65 [...] We understand the company has made significant operational improvements, however, our ratings change is due to ongoing macro headwinds."

Norfolk Southern: Outperform, $65 Price Target

"We are increasing our 1Q EPS estimate from $0.86 to $0.89, and lowering our 2016 EPS estimate from $5.00 to $4.95."

Union Pacific: Market Underperform, $55 Price Target

We are lowering our 1Q EPS estimate from $1.16 to $1.10, and further lowering our 2016 EPS estimate from $5.20 to $5.10."

At The Time Of This Writing...

  • Union Pacific was seen trading up 3.18 percent on the day at $77.94.
  • Norfolk Southern was seen trading up 1.45 percent on the day at $72.70.
  • CSX was seen trading up 2.39 percent on the day at $23.97.
  • Canadian Pacific was seen trading up 2.70 percent on the day at $124.35.
  • Canadian National was seen trading up 0.91 percent on the day at $55.19.
  • Image Credit: Public Domain

    Latest Ratings for CNI

    DateFirmActionFromTo
    Apr 2019DesjardinsDowngradesBuyHold
    Apr 2019CitigroupMaintainsBuyBuy
    Jan 2019Credit SuisseUpgradesNeutralOutperform

    View More Analyst Ratings for CNI
    View the Latest Analyst Ratings

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