Bank of America Upgrades Nomura to Buy Amid Earnings Improvements
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: CNBC
- Rating Upgrade: Bank of America upgraded Nomura from neutral to buy, primarily based on improvements in earnings and return on equity, indicating the firm's performance is strengthening under market conditions, which is expected to drive stock price increases.
- Market Sensitivity: Despite Nomura's historically volatile earnings, recent performance improvements have widened the gap to its price objective, demonstrating the company's resilience in uncertain market environments, potentially attracting more investor attention.
- Tesla Fundamentals Analysis: Barclays reiterated Tesla as equal weight, noting that its stock price is almost entirely narrative-driven, with fundamentals like Q2 deliveries and margins increasingly overlooked, which could lead to misjudgments about future performance by investors.
- Emerging Market Opportunities: Benchmark initiated coverage of Pinnacle Financial Partners with a buy rating, believing that management's execution over the next few quarters will improve its relative valuation, showcasing the company's competitive advantages and growth potential in regional markets.
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Analyst Views on CNI
Wall Street analysts forecast CNI stock price to fall
15 Analyst Rating
9 Buy
6 Hold
0 Sell
Moderate Buy
Current: 120.360
Low
105.00
Averages
113.56
High
136.77
Current: 120.360
Low
105.00
Averages
113.56
High
136.77
About CNI
Canadian National Railway Company is a transportation and logistics company. The Company's services include rail, intermodal, trucking, and supply chain services. The Company’s rail services offer equipment, customs brokerage services, transloading and distribution, private car storage and others. Its intermodal container services help shippers expand their door-to-door market reach with about 23 strategically placed intermodal terminals. Its intermodal services include temperature-controlled cargo, port partnerships, logistics park, custom brokerage, transloading and distribution, and others. Its trucking services include door-to-door service, import and export dray, interline services, and specialized services. Its supply chain services offer comprehensive services across a range of industries and product types. The Company transports more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
CN Releases 2025 Sustainability Data Supplement Highlighting Key Achievements
- Sustainability Progress: CN's 2025 Sustainability Data Supplement highlights its performance across environmental, safety, and governance metrics, showcasing ongoing efforts toward its 2030 emissions reduction targets, which underscores the strategic importance of sustainability in its operations.
- Industry Recognition: As of June 15, 2026, CN has been selected for the Dow Jones Best-in-Class World Index for the 14th consecutive year, reflecting its excellence in responsible operations and long-term performance, thereby reinforcing its market position.
- Climate Change Commitment: CN received a 'B' score in the 2025 CDP Climate Change Questionnaire, indicating its commitment to corporate transparency and proactive climate action, which enhances investor confidence in its sustainability initiatives.
- Safety and Efficiency Enhancements: The company is focused on improving the safety and efficiency of its rail operations to ensure reliable service delivery, thereby driving long-term shareholder value while supporting its customers and the communities it serves.
See More
Canadian National Railway and Johnson Controls Outlook
- Performance Outlook: Canadian National Railway is expected to see a volume rebound in the second half of 2026, and despite a slight 1.5% decline recently, it has achieved a 17.3% year-to-date gain, indicating a solid fundamental position suitable for long-term investment.
- Cash Flow Performance: Over the past decade, Canadian National Railway has maintained cash flow as a percentage of revenue in the high teens, and despite a $350 million loss last year due to U.S. trade tariffs, it still managed a 7% increase in earnings per share, showcasing its strong cash flow generation capabilities.
- Data Center Driven Growth: Johnson Controls' stock fell 1.6% over the past week but is up 19.3% year-to-date, with its exposure to data centers driving order growth in the Americas, resulting in a $20 billion backlog.
- Earnings Guidance Increase: Johnson Controls raised its 2026 earnings per share guidance from $4.55 to $4.85, reflecting management's confidence in future growth, particularly driven by its data center business, demonstrating the effectiveness of its strategic adjustments.
See More
Analysis of Pullback Opportunities in Industrial Stocks
- Canadian National Railway Performance: Despite a 1.5% decline for the week ending June 24, Canadian National Railway has gained 17.3% year-to-date, indicating strong fundamentals and stable cash flow, suggesting investors should not wait for deeper pullbacks to enter.
- Significant Geographic Advantage: The company controls a 19,500-mile railway network in North America and monopolizes the port of Prince Rupert in Canada, providing a unique market position that fosters intermodal growth and enhances investment appeal.
- Johnson Controls Dynamics: Although shares fell 1.6% over the past week, Johnson Controls has risen 19.3% year-to-date, with its exposure to data centers and robust order growth making it an industrial stock worth monitoring.
- Earnings Guidance Upgrade: Johnson Controls raised its 2026 earnings-per-share guidance from $4.55 to $4.85, reflecting strong demand in the data center market and management's confidence in future growth.
See More
PlasCred Signs Long-Term Lease with CN Railway for Neos Project
- Lease Agreement Secured: PlasCred Circular Innovations Inc. has entered into a conditional long-term lease with Canadian National Railway for the Scotford Yard site in Fort Saskatchewan, Alberta, providing an initial 15-year term with options to extend up to 30 years, ensuring long-term operational stability in Alberta's Industrial Heartland.
- Facility Size and Capacity: The leased property spans approximately 7.34 acres and includes a 35,000-square-foot industrial building along with a 200-car rail siding, facilitating the receipt, storage, and advanced recycling of mixed plastic waste, with a processing capacity of up to 100 tonnes per day.
- Product Conversion Efficiency: The PlasCred Neos facility is expected to convert mixed plastics into approximately 500 barrels per day of refined hydrocarbon condensate for use in new plastic manufacturing and other industrial applications, significantly enhancing plastic recycling rates and promoting sustainability.
- Strategic Logistics Advantage: The facility will have direct access to CN's rail network, optimizing transportation efficiency and reducing infrastructure requirements, thereby supporting future expansion plans and enhancing the company's competitive position in the North American market.
See More
PlasCred Enters Long-Term Lease with CN for Neos Project
- Lease Agreement Signed: PlasCred Circular Innovations Inc. has entered into a conditional long-term lease agreement with Canadian National Railway Company for the Scotford Yard site in Fort Saskatchewan, Alberta, with an initial term of 15 years and options to extend up to 30 years, securing a strategic position in Alberta's Industrial Heartland.
- Facility Size and Capacity: The leased property spans approximately 7.34 acres and includes a 35,000-square-foot industrial building and an existing 200-car rail siding, supporting the receipt, storage, and advanced recycling operations of mixed plastic waste, with a processing capacity of up to 100 tonnes per day.
- Product Conversion and Market Potential: The PlasCred Neos project will convert processed plastics into approximately 500 barrels of refined hydrocarbon condensate per day, which can be used in the manufacture of new plastics and other industrial applications, indicating strong market demand potential.
- Logistics and Infrastructure Advantages: By collaborating with CN, PlasCred will gain direct rail access, enhancing transportation efficiency and reducing infrastructure requirements, thereby providing a solid foundation for future expansion and commercialization strategies.
See More
Railroad Industry Sees Volume Growth Boost
- Industry Growth Momentum: Evercore's Jonathan Chappell highlights that improvements in autos, chemicals, and forest products have enabled the railroad industry to achieve mid-single-digit volume growth this quarter, indicating an improving fundamental backdrop, accelerating earnings growth, and rising multiples.
- CNI Rating Upgrade: Chappell upgrades Canadian National Railway (CNI) from In Line to Outperform with a 15% price target increase to $124, anticipating a significant earnings beat in Q2, particularly with revenue ton-mile (RTM) growth tracking near 4.5%.
- Earnings Forecast Revisions: Evercore raises Q2 EPS estimates for several railroads by 5-13%, with CSX, Norfolk Southern (NSC), and Union Pacific (UNP) seeing increases of 8%, 13%, and 6.8% respectively, reflecting a positive trend across the industry.
- Strong Market Performance: CNI shares rose 3.4% on Thursday for the fourth consecutive day, indicating growing market confidence in its future earnings growth and the potential to further close the valuation gap for 2024 to 2025.
See More
CN Releases 2025 Sustainability Data Supplement Highlighting Key Achievements
- Sustainability Progress: CN's 2025 Sustainability Data Supplement highlights its performance across environmental, safety, and governance metrics, showcasing ongoing efforts toward its 2030 emissions reduction targets, which underscores the strategic importance of sustainability in its operations.
- Industry Recognition: As of June 15, 2026, CN has been selected for the Dow Jones Best-in-Class World Index for the 14th consecutive year, reflecting its excellence in responsible operations and long-term performance, thereby reinforcing its market position.
- Climate Change Commitment: CN received a 'B' score in the 2025 CDP Climate Change Questionnaire, indicating its commitment to corporate transparency and proactive climate action, which enhances investor confidence in its sustainability initiatives.
- Safety and Efficiency Enhancements: The company is focused on improving the safety and efficiency of its rail operations to ensure reliable service delivery, thereby driving long-term shareholder value while supporting its customers and the communities it serves.
See More
Canadian National Railway and Johnson Controls Outlook
- Performance Outlook: Canadian National Railway is expected to see a volume rebound in the second half of 2026, and despite a slight 1.5% decline recently, it has achieved a 17.3% year-to-date gain, indicating a solid fundamental position suitable for long-term investment.
- Cash Flow Performance: Over the past decade, Canadian National Railway has maintained cash flow as a percentage of revenue in the high teens, and despite a $350 million loss last year due to U.S. trade tariffs, it still managed a 7% increase in earnings per share, showcasing its strong cash flow generation capabilities.
- Data Center Driven Growth: Johnson Controls' stock fell 1.6% over the past week but is up 19.3% year-to-date, with its exposure to data centers driving order growth in the Americas, resulting in a $20 billion backlog.
- Earnings Guidance Increase: Johnson Controls raised its 2026 earnings per share guidance from $4.55 to $4.85, reflecting management's confidence in future growth, particularly driven by its data center business, demonstrating the effectiveness of its strategic adjustments.
See More
Analysis of Pullback Opportunities in Industrial Stocks
- Canadian National Railway Performance: Despite a 1.5% decline for the week ending June 24, Canadian National Railway has gained 17.3% year-to-date, indicating strong fundamentals and stable cash flow, suggesting investors should not wait for deeper pullbacks to enter.
- Significant Geographic Advantage: The company controls a 19,500-mile railway network in North America and monopolizes the port of Prince Rupert in Canada, providing a unique market position that fosters intermodal growth and enhances investment appeal.
- Johnson Controls Dynamics: Although shares fell 1.6% over the past week, Johnson Controls has risen 19.3% year-to-date, with its exposure to data centers and robust order growth making it an industrial stock worth monitoring.
- Earnings Guidance Upgrade: Johnson Controls raised its 2026 earnings-per-share guidance from $4.55 to $4.85, reflecting strong demand in the data center market and management's confidence in future growth.
See More
PlasCred Signs Long-Term Lease with CN Railway for Neos Project
- Lease Agreement Secured: PlasCred Circular Innovations Inc. has entered into a conditional long-term lease with Canadian National Railway for the Scotford Yard site in Fort Saskatchewan, Alberta, providing an initial 15-year term with options to extend up to 30 years, ensuring long-term operational stability in Alberta's Industrial Heartland.
- Facility Size and Capacity: The leased property spans approximately 7.34 acres and includes a 35,000-square-foot industrial building along with a 200-car rail siding, facilitating the receipt, storage, and advanced recycling of mixed plastic waste, with a processing capacity of up to 100 tonnes per day.
- Product Conversion Efficiency: The PlasCred Neos facility is expected to convert mixed plastics into approximately 500 barrels per day of refined hydrocarbon condensate for use in new plastic manufacturing and other industrial applications, significantly enhancing plastic recycling rates and promoting sustainability.
- Strategic Logistics Advantage: The facility will have direct access to CN's rail network, optimizing transportation efficiency and reducing infrastructure requirements, thereby supporting future expansion plans and enhancing the company's competitive position in the North American market.
See More
PlasCred Enters Long-Term Lease with CN for Neos Project
- Lease Agreement Signed: PlasCred Circular Innovations Inc. has entered into a conditional long-term lease agreement with Canadian National Railway Company for the Scotford Yard site in Fort Saskatchewan, Alberta, with an initial term of 15 years and options to extend up to 30 years, securing a strategic position in Alberta's Industrial Heartland.
- Facility Size and Capacity: The leased property spans approximately 7.34 acres and includes a 35,000-square-foot industrial building and an existing 200-car rail siding, supporting the receipt, storage, and advanced recycling operations of mixed plastic waste, with a processing capacity of up to 100 tonnes per day.
- Product Conversion and Market Potential: The PlasCred Neos project will convert processed plastics into approximately 500 barrels of refined hydrocarbon condensate per day, which can be used in the manufacture of new plastics and other industrial applications, indicating strong market demand potential.
- Logistics and Infrastructure Advantages: By collaborating with CN, PlasCred will gain direct rail access, enhancing transportation efficiency and reducing infrastructure requirements, thereby providing a solid foundation for future expansion and commercialization strategies.
See More
Railroad Industry Sees Volume Growth Boost
- Industry Growth Momentum: Evercore's Jonathan Chappell highlights that improvements in autos, chemicals, and forest products have enabled the railroad industry to achieve mid-single-digit volume growth this quarter, indicating an improving fundamental backdrop, accelerating earnings growth, and rising multiples.
- CNI Rating Upgrade: Chappell upgrades Canadian National Railway (CNI) from In Line to Outperform with a 15% price target increase to $124, anticipating a significant earnings beat in Q2, particularly with revenue ton-mile (RTM) growth tracking near 4.5%.
- Earnings Forecast Revisions: Evercore raises Q2 EPS estimates for several railroads by 5-13%, with CSX, Norfolk Southern (NSC), and Union Pacific (UNP) seeing increases of 8%, 13%, and 6.8% respectively, reflecting a positive trend across the industry.
- Strong Market Performance: CNI shares rose 3.4% on Thursday for the fourth consecutive day, indicating growing market confidence in its future earnings growth and the potential to further close the valuation gap for 2024 to 2025.
See More
