Canadian National Railway Shares Slide On Multiple Analyst Ratings
- Raymond James analyst Steve Hansen downgraded Canadian National Railway (NYSE: CNI) to Market Perform from Outperform with a price target of C$158, up from C$152.
- Hansen states that he raised the stock's target price because of the "roll-out of a new strategic plan last week that seemingly aims to return CN to its core roots in precision scheduled railroading." However, despite the target price increase, he downgraded the stock to Market Perform, saying that investors are "already paying up for much of the initial (easiest) upside."
- TD Securities analyst Cherilyn Radbourne upgraded to Buy from Hold with a price target of C$175, up from C$165.
- Radbourne believes that Canadian National's targets, which imply 2022 earnings per share of $7.00, "will put a floor under the stock to some degree, and increase investors' assessment of the company's multi-year earnings potential."
- Cowen analyst Jason Seidl raised the price target to $119 (implying an upside of 4.9%) from $110 and kept a Market Perform rating on the shares.
- Seidl believes that under pressure from an activist investor, Canadian National laid out aggressive plans for cost reductions, price increases, share repurchases, and strategic reviews for non-core assets.
- BMO Capital analyst Fadi Chamoun downgraded to Market Perform from Outperform with a price target of $155 (implying an upside of 36.6%), up from $150, after reinstating coverage of the name.
- Chamoun says an activist campaign currently underway is tapping into investors' negative sentiment following several years of share price underperformance. He thinks this is a positive catalyst, with management outlining some meaningful and encouraging steps to improve operational efficiency.
- Price Action: CNI shares are trading lower by 4.21% at $113.33 on the last check Monday.
Latest Ratings for CNI
| Date | Firm | Action | From | To |
|---|---|---|---|---|
| Feb 2022 | Argus Research | Upgrades | Hold | Buy |
| Jan 2022 | Deutsche Bank | Maintains | Buy | |
| Jan 2022 | Deutsche Bank | Upgrades | Hold | Buy |
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