CanadaJul 28, 2026, 7:15 AM ETCanadian National Railway Company (CNI) Stock, CNR:CA StockCP, UNP, CP:CAYi Hu, CFA170 FollowersCanadian National Railway delivered strong 2Q26 results, driven by operational excellence and surges in energy and grain volumes.I downgrade CNI to 'hold' from 'buy' as the valuation discount has diminished, with a new $126 price target based on 22x FY26 earnings.Much of the recent growth stemmed from temporary factors such as record grain crops and fuel surcharges, unlikely to be sustained in the long run.While energy volumes offer a multi-year growth opportunity, management’s guidance and sector valuation suggest limited near-term upside.shaunl/iStock Unreleased via Getty ImagesCanadian National Railway (CNI), one of the duopoly operators of freight rails in Canada, posted impressive 2Q26 earnings, thanks largely to operational excellence and spikes in energy and grain volumes.A year ago, myThis article was written byYi Hu, CFA170 FollowersThanks for reading my articles. I'm an independent financial writer and Chartered Financial Analyst. I previously worked for Fidelity International and Bloomberg. My writing focus is on quality businesses with wide moats, high efficiency, strong cash flows and healthy balance sheets. A lot of my time is spent searching for wonderful companies at fair prices. A key purpose of my writing is to invite opposite views which may be essential to refining my investment ideas. All criticism is welcome.Analyst’s Disclosure: I/we have a beneficial long position in the shares of CNI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comments