Dahlman Rose Optimistic About Canadian Rail, Maintains Buy (CNI)

Dahlman Rose & Co wrapped up investor day with Canadian National Railway Company CNI. A focus of the meetings was the importance of maintaining market share, and CNI's plans to gain new customers. Dahlman analysts Jason Seidl and Matthew Elkott believe that rail pricing has bottomed out, and will improve going forward. They said, "CNI expressed optimism about the economy, recovering rail traffic, and exposure to growing Asian markets. The company appears focused on gaining market share through service enhancement while maintaining solid pricing. Near-term operating leverage still exists, and long-term efficiencies are on the horizon." The analysts maintained a Buy rating for CNI, with a price target of $69, based on a 14.5x multiple on a 2011 EPS of $4.75.