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Investing.com - Canadian National Railway (NYSE:CNR) was downgraded by JPMorgan from Overweight to Neutral with a price target reduction to C$154.00 from C$163.00.
JPMorgan cited the company’s failure to recover from a series of disruptions in 2024, which prevented the railway operator from getting "back on track" with its previously lowered multi-year outlook.
The investment bank expressed concern about the sudden departure of the Chief Commercial Officer after only 15 months in the role, which raises questions about the company’s commercial strategy that remains "highly capital intensive" for the remainder of the year.
JPMorgan noted that generating consistent and profitable growth has been challenging for the entire industry, but characterized this as a "lingering concern" specifically for Canadian National Railway, which it described as "the most mature of the scheduled rail networks."
The firm acknowledged that Canadian National’s operating team has effectively reduced assets to control costs while maintaining service and positioning for growth.
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