Susquehanna downgraded Canadian National Railway (CNR.TO) from a "strong-buy" or "positive" rating to "hold" or "neutral." The firm cited its prior investment thesis for the railway as largely played out, seeing limited upside for the stock. The downgrade also comes ahead of a review of the US-Mexico-Canada (USMCA) trade agreement.
Susquehanna simultaneously upgraded competitor CSX to "positive." This reflects a broader shift in preferences within the rail sector. Despite the downgrade, Susquehanna slightly increased its price target on Canadian National's U.S.-listed shares (CNI) to $140 from $138. This ratings change follows a period where CNR's stock has traded near its 52-week high.