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Investing.com - National Bank Financial downgraded Canadian National Railway (TSX:CNR) (NYSE:CNI) from Outperform to Sector Perform on Wednesday, while lowering its price target to C$150.00 from C$170.00. The stock, currently trading at $100.37, sits near its 52-week low of $91.65, with analyst targets ranging from $105.58 to $123.92.
The rating change follows Canadian National Railway’s second-quarter results, with National Bank Financial noting it sees "few reasons for the stock to move meaningfully higher in the short-to-midterm."
National Bank Financial reduced its valuation multiple on Canadian National Railway shares from 20.0x to 18.0x P/E on its 2026 EPS forecast, citing "lingering headwinds to valuation in the near-to-medium term."
The downgrade includes downward adjustments to the firm’s forecasts for the railway operator, contributing to the 11.8% reduction in the price target.
Canadian National Railway operates one of North America’s largest rail networks, spanning Canada and mid-America and connecting three coasts: the Atlantic, the Pacific, and the Gulf of Mexico.
In other recent news, Canadian National Railway announced its Board of Directors has approved a quarterly dividend of C$0.8875 per common share for the third quarter of 2025, payable on September 29, 2025. The company also plans to invest approximately $30 million in Tennessee as part of its 2025 capital investment program, focusing on infrastructure and network improvements. In leadership changes, Janet Drysdale has been appointed as interim Chief Commercial Officer, succeeding Remi G. Lalonde.
Analyst opinions on Canadian National Railway have been mixed recently. JPMorgan downgraded the company’s stock from Overweight to Neutral, citing disruptions that impacted its multi-year outlook. Conversely, Raymond (NSE:RYMD) James upgraded the stock from Market Perform to Outperform, raising the price target to C$162.00 due to improved business prospects. These developments reflect a complex picture for the company as it navigates operational challenges and strategic investments.
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