On Friday, Jefferies analysts upgraded Canadian National Railway (TSX:CNR) (NYSE:CNI) stock from Hold to Buy, setting a price target at $120.00.
The analysts at Jefferies expressed optimism regarding the broader transportation sector, anticipating a rally in 2025 driven by a favorable business climate under a pro-business administration. They believe this environment will stimulate demand for transportation and logistics services, benefiting companies like Canadian National Railway.
The upgrade comes with the expectation that Canadian National Railway will experience an earnings acceleration in the near future.
Jefferies suggested that the current stock valuation presents a compelling risk/reward scenario for investors, indicating that the stock's market price is sufficiently low to offer a good buying opportunity.
The analysts' commentary highlighted the potential for a sector-wide improvement in the coming years. They pointed out that the anticipated pro-business policies could lead to increased demand for the services provided by Canadian National Railway and its peers.
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