Goldman Sachs analyst Jordan Alliger downgraded Canadian National to Sell from Neutral with a price target of C$150, down from C$153. The shares trade at a premium valuation versus the company’s U.S. counterparts, and this should narrow with ongoing U.S. rail service improvement, eventual positive volume growth, and a resumption in incremental margin generation, Alliger tells investors in a research note. Should this thesis play out, there should be a reversal in stock price outperformance that saw Canadian National heavily outperform the U.S. counterparts in 2022, contends the analyst.
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Published first on TheFly
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