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Where would you enter CNI?

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Where would you enter CNI?

Dear MM Team, If looking to initiate a position in CNI which you hold, following the recent bounce off it's lows, do you see further upside if bonds yields stabilize or decline over the next 12 months? A number of the real estate stocks have recently bounced off their lows but do you think the lows will be re-tested again for a better entry point? What would be your longer term price target for CNI whilst collecting what appears to be a healthy dividend yield along the way? Thank you, Bernie

Answer

Hi Bernie,

As you alluded to we are keen on the Real Estate Sector, including CNI, into 2024 with bond yields a likely major tailwind. Over the last two years CNI has fallen almost 70% hence we would caution around being too pedantic on entry, i.e. we bought Goodman Group (GMG) recently to ensure we increased our exposure to the space.

  • Our ideal target for CNI is back over $2 hence the risk/reward ~$1.40 is very appealing as the stock takes a rest after its sharp +30% rally through November.
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Centuria Capital Group (CNI)
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