Canadian National Railway (USA) (NYSE:CNI) a Buy: Scotia Capital

In a research note issued to investors, Turan Quettawala at Scotia Capital Upgraded Canadian National Railway (USA) (NASDAQ:CNI)to a Buy. In the year following Turan’s ratings, the stocks covered yield an average return of 9.5% according to In the past year 7 out of 16 recommendations or 44% were successful.

On a consensus basis, Wall Street sell-side analysts have a mean target price of $71.403 for Canadian National Railway Company (NYSE:CNI). This number is based on the mean estimate from the 9 research firms that recently issued reports on the company.

According to analysts, Canadian National Railway Company (NYSE:CNI) is expected to report earnings per share for the current fiscal quarter of $0.91. This is the consensus mean estimate based on the individual covering sell-side analysts’ reported numbers. The company last reported earnings for the period ending on 2015-03-31 of $0.7.

The average broker recommendation is arithmetical average of the individual ratings contributed by sell-side analysts to produce a Consensus Analyst Rating for each stock. On a scale of 1 to 5 where 1 is a Strong Buy and 5 is a Strong Sell, has the stock is ranked 2.46 based on 9 sell-side broker recommendations. Of the 9 analyst estimates, the most bullish sees the stock reaching $78 within the next 12 months while the most bearish analyst sees the stock at $66.21 within the year.

In looking at the long term growth prospects of the company, sell-side analysts have a consensus mean earnings per share estimate for the current year of $3.55. The high end estimate for this time frame is $3.71 with the low being $3.43. In looking at the next three to five years, the long term earnings per share estimate growth rate for the company is 11.5%, based on 2 analysts providing projections.

Canadian National Railway Company (CN) is engaged in the rail and related transportation business. CN’s network of approximately 20,100 route miles spans Canada and mid-America, connecting three coasts: the Atlantic, the Pacific and the Gulf of Mexico, serving the ports of Vancouver, Prince Rupert (British Columbia), Montreal, Halifax, New Orleans, and Mobile (Alabama) and metropolitan areas of Toronto, Buffalo, Chicago, Detroit, Duluth (Minnesota)/Superior (Wisconsin), Green Bay (Wisconsin), Minneapolis/St. Paul, Memphis and Jackson (Mississippi), with connections to all points in North America. CN’s network, and its co-production agreements, routing protocols, marketing alliances and interline agreements, provide CN customers access to all three North American Free Trade Agreement (NAFTA) nations. In March 2012, the Company acquired a locomotive program.