CN’s 3Q15 EPS of $1.26/share beat consensus ($1.15/share) and our $1.17/share forecast. Revenues were up 3% and CN cut operating costs by 5% y/y, and posted a record operating ratio of 53.8%. The record operating ratio demonstrates CN’s ability to cut costs quickly in a slowing economy. We maintain our 12-month target price of $85.00/share and our Market Perform rating.