Scotiabank Sticks with Long-Term Confidence in Canadian National Railway (CNI)

Canadian National Railway Company (NYSE:CNI) is included among the 12 Most Profitable Dividend Stocks to Buy in 2026.

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On January 21, Scotiabank raised its price target on Canadian National Railway Company (NYSE:CNI) to C$163 from C$160. The firm kept an Outperform rating. The call reflects continued confidence in the company’s long-term positioning rather than any short-term catalyst.

One of the clearest reasons investors keep coming back to Canadian National is the sheer scale of its network. Spanning roughly 32,000 kilometres, the rail system runs coast to coast across Canada and extends deep into the US Midwest and down to the Gulf. That footprint is not just large, it is also strategic.

From a logistics standpoint, the network functions like a toll bridge. It is essential infrastructure, and it cannot realistically be replicated. Building a competing system of similar reach would take decades and hundreds of billions in capital, making the barrier to entry effectively insurmountable. Canadian National has reinforced that advantage over time. The company has secured exclusive port access, including at Prince Rupert, and invested heavily in intermodal hubs that tie customers more tightly into its network. Those moves are not cosmetic as they help drive efficiency and keep volumes sticky.

The result shows up in the numbers as operating ratios around 62% place Canadian National among the most efficient rail operators in North America.

Canadian National Railway Company (NYSE:CNI) runs one of the continent’s largest rail networks, with access to three coastlines. That geographic reach remains a defining part of its competitive moat.

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Disclosure: None.