The report on CN Rail has been updated and rated Weak Buy / Hold at $111.
Canadian national Railway has been an excellent investment over the years going all the back to its privatization and Initial Public Offering in 1995. A buy and hold strategy has proven wise.
As detailed in the report, CN is facing a weak Q2 and likely a modest earnings decline for 2020. Despite that weaker outlook it will still likely be a good long term hold and a stock to buy on any material dip. CN is a high quality holding.
Sharply lower fuel costs may not benefit CN since its fuel surcharge and risk management program is designed to minimize CN’s exposure to fuel price swings. But there is a two month lag in the fuel surcharge and with the extreme drop in fuel prices there may be a benefit in Q2 (which might then be offset in Q3).