Canadian National Railway stock price target lowered to C$163 by BMO

Investing.com - BMO Capital has lowered its price target on Canadian National Railway (TSX:CNR) (NYSE:CNR) to C$163.00 from C$168.00 while maintaining an Outperform rating on the stock. The company’s shares, currently trading at $82.15, have shown remarkable strength with a 15.42% gain over the past week. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value estimates.

The price target reduction follows Canadian National Railway’s Q2/F25 results, which BMO described as "generally in line" with their expectations and consensus estimates. InvestingPro data shows the company maintains strong financial health with a GOOD overall rating, though it’s currently trading at a relatively high P/E ratio of 21.95x. Two key InvestingPro Tips highlight that CNR holds more cash than debt and maintains strong liquidity, with eight more exclusive insights available to subscribers.

BMO noted that Canadian National Railway lowered its F2025 guidance, reflecting volume and mix headwinds amid ongoing soft industrial demand, negative impact from tariffs/trade uncertainty, and foreign exchange headwinds.

The firm reduced its estimates and target price by 3%, but maintained its Outperform rating based on what it views as a favorable risk/reward profile for the stock.

BMO Capital indicated that its positive outlook for Canadian National Railway is dependent on an expected freight market recovery in 2026/2027.

In other recent news, Core Natural Resources faced challenges with its Leer South mine due to elevated carbon monoxide levels, prompting a temporary reseal of a section of the mine. Despite these setbacks, Benchmark maintained its Buy rating and a $105.00 price target, citing successful restoration efforts and good condition of major longwall components. UBS also initiated coverage of Core Natural Resources with a Buy rating and an $80.00 price target, viewing it as a high-quality investment despite uncertainties like merger synergies and recovery from first-quarter losses. Meanwhile, Canadian National Railway held its annual shareholder meeting, where all 11 management-nominated directors were elected, with Shauneen Bruder re-elected as board chair. RBC Capital maintained an Outperform rating for Canadian National Railway, highlighting growth potential at its Prince Rupert facility. Analysts from RBC Capital foresee significant expansion in the region, driven by products such as bulk goods and natural gas liquids. These developments indicate ongoing interest and confidence from analysts in both Core Natural Resources and Canadian National Railway.

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