US Research at a Glance - June 24, 2026

Research evidence excerpt

US Research at a Glance - June 24, 2026

U.S. RESEARCH AT A GLANCE

Earnings Preview

Walter Spracklin, CFA (Analyst) Q2 Preview for the Class 1 Railroads

(416) 842-7877; walter.spracklin@rbccm.com Published June 24 2026 00:16:44 EDT

James McGarragle, CFA, CPA (Analyst)

(416) 842-7862; james.mcgarragle@rbccm.com In this report we update our Q2 estimates for carload trends, mgmt commentary at

conferences, and our own channel checks. We caught up with mgmt teams at CN,

CPKC, CSX and UNP. Overall, we see CN, CSX, and UNP as delivering the best earnings

upside versus consensus given strong volume trends. We see a near-term neutral

reaction to CP reflecting strong operating metrics and in-line volumes, offset by

several derailments and increased SBC. In terms of valuation, we took higher our

target multiples at CN, CP, and CSX, due to indications the freight backdrop is

improving and left our multiple unchanged at UNP (while NSC's valuation is tied to

UNP's share price). See Exhibit 4 for a full summary of our estimate and price target

changes. Our best idea into the quarter is CN reflecting strong volume trends as well

as solid car velocity, which we believe sets the stage for a Q2 beat and a guidance

raise. We see this as a driver of both valuation and higher consensus estimates. We

also continue to flag meaningful longer-term opportunity in CPKC and UNP on the

back of their respective acquisitions.

Company Comments

Ashish Sabadra (Analyst) CME Group Inc. (NASDAQ: CME; 242.26)

(415) 633-8659; ashish.sabadra@rbccm.com Published June 24 2026 06:05:30 EDT

William Qi (Associate)

(646) 618-6963; william.qi@rbccm.com Management Meetings Takeaways

Rating: Sector Perform

Price Target: 302.00

Our view: We marketed with CFO Lynne Fitzpatrick where the key discussion