Deutsche Bank Turns Bullish On Canadian National Railway

Deutsche Bank analyst Amit Mehrotra upgraded Canadian National Railway CNI to Buy from Hold and raised the price target to $137 (an upside of 12%), from $129.
Mehrotra mentions that the market is underappreciating the potential for positive, operational-led management change at Canadian National "after many years of underperformance."
The analyst estimates the company's existing management and board have leftover $1 billion of profits "on the table" over the last six years, which is worth over $20 billion in equity value at today's valuation levels.
Mehrotra says this reflects significant underperformance in price and service levels and believes management change will come over the next two months.
Price Action: CNI shares are trading lower by 0.16% at $122.14 on the last check Friday.

Overview Rating:

Speculative

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