Ken Hoexter, an analyst from Bank of America Securities, reiterated the Hold rating on Canadian National Railway (CNI – Research Report). The associated price target was lowered to $107.00.
Ken Hoexter has given his Hold rating due to a combination of factors impacting Canadian National Railway’s performance. The company’s first-quarter-to-date volumes have been below expectations, primarily due to severe winter weather that led to operational challenges such as shorter trains and delayed volumes. While certain segments like Coal and Automotive have shown stronger-than-expected growth, other areas such as Petroleum & Chemicals, Metals & Minerals, and Forest Products have underperformed relative to prior estimates.
Despite these volume challenges, Canadian National Railway is benefiting from strong core pricing and favorable foreign exchange impacts, which have helped offset some fuel-related headwinds. However, the adverse weather conditions have pressured margins and are expected to cause a deterioration in the operating ratio. Consequently, the price objective for the stock has been adjusted to $107, reflecting near-term earnings pressure and a revised earnings multiple. These factors collectively support the decision to maintain a Neutral rating on the stock.
According to TipRanks, Hoexter is a 4-star analyst with an average return of 2.6% and a 47.28% success rate. Hoexter covers the Industrials sector, focusing on stocks such as Westinghouse Air Brake Technologies, XPO, and Canadian National Railway.
In another report released yesterday, CIBC also maintained a Hold rating on the stock with a C$157.00 price target.