Bank of America Securities analyst Ken Hoexter reiterated a Hold rating on Canadian National Railway today and set a price target of $107.00.
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Ken Hoexter has given his Hold rating due to a combination of factors including Canadian National Railway’s recent performance and future outlook. The company has shown stronger than expected volume growth in the fourth quarter to date, with a notable increase in Revenue Ton Miles, particularly in Intermodal and Grain & Fertilizers. However, there are concerns about the sustainability of this growth due to potential headwinds such as negative mix effects, fuel costs, and the removal of the carbon surcharge tax, which could offset core pricing benefits.
Moreover, Canadian National Railway remains cautious about its 2026 volume growth prospects due to external pressures like tariffs, a soft housing market, and uncertainties in consumer demand and restocking. Despite these challenges, the price objective has been raised to $107, reflecting an improved outlook based on volume upside and operating leverage from a better grain crop. Overall, while there are positive indicators, the mixed outlook justifies a Hold rating as the company navigates these complexities.
Hoexter covers the Industrials sector, focusing on stocks such as CSX, CH Robinson, and Canadian National Railway. According to TipRanks, Hoexter has an average return of 2.5% and a 50.40% success rate on recommended stocks.