Q: I have funds to deploy and would like some exposure to the transportation sector with a 5+ year time horizon. Capital appreciation is more important than dividends.
Given the unpredictable tariff environment with the U.S. and current inflation problems, would either CNR or CP be a good bet?
What would a good entry price be for each of them?
Thank you.
Given the unpredictable tariff environment with the U.S. and current inflation problems, would either CNR or CP be a good bet?
What would a good entry price be for each of them?
Thank you.
5i Research Answer:
We think either of CNR and CP would be fine for the timeframe mentioned. Tariffs could be gone in that time frame as well. Both have some economic vulnerability but have survived mutliple downturns before and still prospered. We would see $142 for CNR and $109 for CP as decent prices. We would slighly prefer CNR today.