(The following story by Angela Barnes appeared on the Globe and Mail website on July 22.)
MONTREAL — Analysts have been adjusting their profit estimates, and in some cases their price targets, on Canadian National Railway Co. after the transportation firm beat analysts’ estimates for its second quarter. Profit in the quarter ended June 30 was up 34 per cent from a year earlier.
The company also has a bullish outlook for the remainder of the year. Jacqueline Boland, who follows the company for CIBC World Markets Inc., raised her profit estimates for this year and next. She also increased her 12- to 18-month target price to $70 a share from $67. CN closed yesterday on the Toronto Stock Exchange at $58.79. Frederick Larkin, an analyst with Orion Securities Inc., also adjusted his profit estimate for the remainder of 2004 and raised his 12-month target to $67.50 from $60. He has CN as an “overweight.”
Other analysts also made changes. John Barnes at Credit Suisse First Boston Corp. boosted his 2004 and 2005 profit estimates. He also raised his 12-month target price to $48 (U.S.) a share from $44, but left his “neutral” recommendation on the stock in place.