Avondale Cuts Estimates On Railroads... Again

On Friday, Avondale Partners issued a note on the railroad industry, highlighting companies including CSX Corporation (NASDAQ: CSX), Canadian National Railway (USA) (NYSE: CNI), Canadian Pacific Railway Limited (USA) (NYSE: CP), Norfolk Southern Corp. (NYSE: NSC) and Union Pacific Corporation (NYSE: UNP).

Donald Broughton, a managing director at Avondale Partners, lowered the firm's estimates on the railroad companies amid signs of weak U.S. exports due to a strong U.S. dollar, lower volumes in fracking, lower fuel surcharges and higher fixed costs in infrastructure.

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Canadian National: $80 Price Target, Rating Unavailable

"We are lowering our 1Q EPS estimate to C$0.96 from C$1.09, and further lowering our 2016 EPS estimate to C$4.69 from C$4.88."

Canadian Pacific: Market Outperform, Price Target Unavailable

"We are lowering our 1Q EPS estimate from C$2.20 to C$2.11, and increasing our 2016 EPS estimate from C$9.95 to C$10.10….We expect the risk in the current quarter to the downside as a result of macro-driven volume declines."

CSX: Downgraded To Market Underperform, $18 Price Target

"We are lowering our 1Q EPS estimate from $0.37 to $0.32, and further lowering our 2016 EPS estimate from $1.75 to $1.65 [...] We understand the company has made significant operational improvements, however, our ratings change is due to ongoing macro headwinds."

Norfolk Southern: Outperform, $65 Price Target

"We are increasing our 1Q EPS estimate from $0.86 to $0.89, and lowering our 2016 EPS estimate from $5.00 to $4.95."

Union Pacific: Market Underperform, $55 Price Target

We are lowering our 1Q EPS estimate from $1.16 to $1.10, and further lowering our 2016 EPS estimate from $5.20 to $5.10."

At The Time Of This Writing...

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