Price Prediction: RBC Raises Canadian National’s Stock Price For 2027

Canadian National Railway (NYSE:CNI) has been choppy this year. After gaining 13% through March 2, the stock has fallen nearly 10% since. Over the past year, shares are up just 1.84%.

The Street consensus sits at $110.25 USD, representing the broader analyst community’s current price target. RBC Capital is taking a stronger view, raising its price target on CN to C$160 from C$151 while maintaining an Outperform rating. At current exchange rates, C$160 converts to approximately $115.69 USD, sitting well above the Street average. Can CNI realistically reach $115.69 USD (C$160) by year-end?

RBC Capital’s C$160 CNI Prediction

RBC argues that CN offers the best earnings upside among Class I railroads, driven by strong volume trends and network fluidity that the company’s discounted valuation has not yet priced in. That view is grounded in hard operating data. CN’s Q4 2025 operating ratio improved 250 basis points year-over-year to 60.1% on an adjusted basis, while T&E labor productivity surged 14% versus Q4 2024. Peer Union Pacific posted a Q4 2025 operating ratio of 60.5%, suggesting CN has closed the efficiency gap with its larger U.S. rival.

Key Drivers of CNI Stock Performance

1. Network fluidity and capacity readiness. The Edson Sub is now 63% double track, up from roughly 40%, creating approximately six trains of additional capacity in that corridor. Combined with nearly 800 furloughed employees and stored locomotives available on standby, CN is positioned to absorb volume growth with minimal incremental capital.
2. Grain and Intermodal momentum. CN set an all-time annual record in 2025 for Western Canadian grain shipments, with monthly records in October, November, and December. Intermodal revenue rose 10% in Q4—durable, high-frequency revenue streams that support consistent free cash flow generation.
3. Shareholder returns program. CN approved a new share repurchase program of up to 24 million shares running through February 2027 and raised its quarterly dividend by 3% to $0.8875 USD per share. The trailing dividend yield stands at 3.52%, offering income alongside capital appreciation potential.

What Will It Take for CNI to Reach C$160?

With 611.4 million shares outstanding and the C$160 target equating to roughly $115.69 USD, reaching that level would imply a market cap approaching approximately $70.7 billion, up from today’s $62.4 billion. The path requires three things: volume growth materializing in the second half of 2026 after a soft Q1; EPS growing at a rate slightly ahead of volumes as guidance suggests; and the market re-rating CN’s valuation closer to peers as operating leverage becomes visible. CN’s current forward P/E of 17.06x leaves room for multiple expansion if earnings execution stays on track.

The primary risk is the one CEO Tracy Robinson named directly: continued macroeconomic uncertainty and elevated geopolitical risk that could suppress freight volumes beyond current expectations. With record network efficiency, a rebuilt locomotive fleet, and a franchise uniquely exposed to Canadian natural resource exports seeking new global markets, RBC’s C$160 target reflects a credible earnings re-rating story supported by improving operating leverage and a uniquely positioned North American franchise.