Canadian National downgraded to Hold from Buy at Deutsche Bank

Deutsche Bank downgraded Canadian National to Hold from Buy with a price target of $121, down from $125. While the firm sees double digit upside potential for the majority of its rail coverage over the course of next year, its valuation framework implies less upside at Canadian National. For the Canadian rails, there are tangible data points that put them increasingly in a negative light, including growing concerns on Canadian consumers, Canadian grain headwinds starting in Q2 of 2204, and recent government intervention in Mexico, the analyst tells investors in a research note. Deutsche believes Canadian National has managed the current difficult environment well, but its forward estimates together with the company’s high multiple “just don’t warrant a Buy rating.”