Susquehanna downgraded Canadian National Railway to Neutral from a previous Positive rating. The firm also significantly reduced its price target for the stock. Analysts indicated that the previous investment thesis has largely played out with limited remaining upside.
Susquehanna is shifting its rail sector preferences by concurrently upgrading competitor CSX. The firm believes the network of CPKC will likely outperform Canadian National.
External factors may create a noisy environment for the sector, including the upcoming USMCA review. A potential merger between Union Pacific and Norfolk Southern also contributes to industry uncertainty.