CN upgraded to Buy from Hold at Stifel

Stifel analyst Benjamin Nolan upgraded CN (CNI) to Buy from Hold with a lower price target of $120, down from $132, as part of a broader research note previewing Q4 results for Rail companies. The stock has fallen to a more attractive entry point, and the quarterly increase in volume is expected to drive a sequential improvement in operating ratio by 160 bps to 61.5% for Q4, the analyst tells investors in a research note. The firm adds however that it should not be surprising that 2024 did not turn out to be the year of momentous volume growth for the Class 1 railroads amid “many unexpected disruptions” and a slower-than-anticipated freight environment resulting in only a 2.2% volume growth this year. Stifel notes that while it does expect modest volume growth and pricing improvements in 2025, that may not be significant enough to drive share price appreciation.