National Bank Financial lowers target of Canadian National Railway(CNR:TSX) to $139 from $140

STA Research
by: STA Research

 

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National Bank Financial lowers target of Canadian National Railway to $139 from $140, and maintains the Sector Perform rating on the stock.

Stocktargetadvisor has a average target of $145 and a consensus Underperform rating on the stock.

STA Research’s analysis of  of the stock is Bullish with a score of 7.5 out of 10, where 0 is very bearish and 10 very bullish.


What to like:
High market capitalization
This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.
Low volatility
The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although
stability is good, also keep in mind it can limit returns.
Superior total returns
The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.
Low debt
The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector.
Sometimes this is low because the company is not growing and has no growth potential.
Positive cash flow
The company had positive total cash flow in the most recent four quarters.
Positive free cash flow
The company had positive total free cash flow in the most recent four quarters.

 


What to not like:
Overpriced on free cash flow basis
The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.
Low Earnings Growth
This stock has shown below median earnings growth in the previous 5 years compared to its sector

 

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