CN upgraded to Overweight from Equal Weight at Wells Fargo

Wells Fargo analyst Christian Wetherbee upgraded CN to Overweight from Equal Weight with an unchanged price target of $125. In the context of an uncertain freight backdrop, Wells remain constructive on the rails, “and arguably their relative positioning looks more attractive,” the analyst tells investors in a research note. The firm says Canada sets up well for 2025 on accelerating growth and easy compares. While estimates for CN’s Q3 are coming down, the impact is largely from its strike and wildfires, which aid the set-up for 2025. contends the firm. Wells feels more confident in Canadian volume growth fueling better earnings growth than some peers.