Canadian National Railway Faced with Tough Transition from Grain
Dow Jones10-20
1208 ET - Canadian railroads will need to find a new growth driver to replace grain, posing a particular challenge to Canadian National Railway, Raymond James analysts write in a note, downgrading the stock to market perform. "Grain-the dominant growth engine for both carriers through 2026-should remain healthy in absolute terms, but fade rapidly in terms of outsized growth contribution, increasing the importance of replacement growth surfacing elsewhere," the analysts write. While Canadian Pacific Kansas City has solid growth prospects outside of grain, CN Rail has "fewer obvious replacement growth drivers," they write. "The handoff therefore appears more challenging at CN." Shares fall 1.9% to $119.45.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments