02:14 PM EST, 12/04/2024 (MT Newswires) -- National Bank writes that so far in the fourth quarter, CN's volumes as measured by RTMs are down 3.2% while CPKC's are up 1.4%. Analyst Cameron Doerksen notes that rail volumes have been impacted by port shutdowns on Canada's West Coast and Montreal, but with the ports now back to more normal operations and with tailwinds from a solid Canadian grain crop, Doerksen is optimistic that volumes in the final weeks of the quarter will be positive for both railroads. However, uncertainty around trade stemming from tariff threats from the incoming U.S. Administration may weigh on the shares of both companies into 2025.

National is keeping its Outperform rating on CN Rail as its relative valuation remains attractive.

While National remains positive on CPKC's long-term volume growth outlook, its relative valuation is less compelling. Doerksen is keeping his Sector Perform rating, as the uncertainty around tariffs and trade will have more of an impact on investor sentiment for CPKC shares than CN, at least in the short-term.

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