Q: Getting very impatient with this story- more downgrades today - understanding that it is a bit apples /oranges - switch to DOL for growth over next 3 -5 yrs?
5i Research Answer:
We think CNR is a very good company in a very bad environment. Valuation is below historical averages, and the dividend is decent at 2.62% (with growth) but with economic and tariff uncertainty it is hard to be really positive. Consensus does still call for growth (10%+) both this year and next. Free cash flow is good. It will survive any slowdown. That being said, for investors this is really a market/economy call. If one is pessimistic, DOL will likely continue to outperform. It has been a standout this year again. But if one is optimistic on tariff relief and economic growth, CNR will likely have a better 'bounce'. We would probably lean (slightly) towards DOL right now.