01:03 PM EDT, 09/11/2024 (MT Newswires) -- National Bank is lowering its targets on Canadian rail companies, with CN Rail being cut to $181 (from $186), and CPKC to $117, from $119.

Analyst Cameron Doerksen is keeping his Outperform rating on CN Rail as its relative valuation remains attractive.

He remains positive on CPKC's long-term volume growth outlook, but finds that valuation is less compelling, and is keeping a Sector Perform rating on the stock.

Doerksen notes that so far in the third quarter, Canadian rail volumes are mixed (but positive for both CN Rail and CPKC despite the impact of a work stoppage), and despite financial impact from the labor disruptions (with CN lowering its 2024 guidance), National Bank believe that with the lifting of uncertainty around a labor stoppage, the stage may be set for better share price performances from both companies in the coming quarters.

Price: 155.86, Change: -1.79, Percent Change: -1.14