Stephens resumes coverage on Canadian rail operators

Canadian National Railway Co

06/10/2025 12:58

** Stephens resumes coverage on U.S. listed shares of Canadian National Railway CNR.TO with "equal-weight" and Canadian Pacific Kansas City Railway CP.TO with "overweight"

** Brokerage cautious on Canadian National Railway , citing weaker-than-expected Q3 volumes, especially in forest products and metals, due to U.S. housing market softness and tariffs

** Says co is cutting costs, including ~1,000 employee furloughs, to offset top-line weakness

     **  Stephens more constructive on Canadian Pacific, despite near-term volume softness in grain, energy, chemicals, and plastics

** Adds co's unique North American network offers long-term growth potential and insulation from other rail consolidations

** S&P TSX Transportation (Industry Group) index .GTSX2030 down 4.2% YTD

Company
Price Target
Upside from the stocks last close
Canadian National Railway
$100
3.8%
Canadian Pacific Kansas City
$86
10.8%

 (Reporting by Apratim Sarkar in Bengaluru)

 ((Apratim.Sarkar@thomsonreuters.com))