1131 ET - CN Rail's 2Q beat shows last year's reset on targets, messaging and capex are paying off, says Morgan Stanley's Ravi Shanker. In a report, the analyst points to CN Rail's "biggest clean rail beat of the season with EBIT of 6% above" expectations. The company also raised its guidance, "which "signals management is becoming more constructive on the cycle, despite still-conservative assumptions," Shanker thinks there is still room for future guidance upgrades as fuel costs and foreign exchange provide incremental support in 2H. "Last fall, the market was enthused by CNR's reset on targets, messaging and capex, and today's beat and raise is the first real sign of the new plan in action," Shanker adds. (adriano.marchese@wsj.com)

(END) Dow Jones Newswires

July 27, 2026 11:31 ET (15:31 GMT)

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