Q: Good Morning
CNR fell 6% since last Friday. Is there any specific company related issue with respect to this drop? Would you add, buy or sell at this level? Will appreciate your comments with respect to this stock going forward.
Thanks
CNR fell 6% since last Friday. Is there any specific company related issue with respect to this drop? Would you add, buy or sell at this level? Will appreciate your comments with respect to this stock going forward.
Thanks
5i Research Answer:
JULY 17 Raymond James actually upgraded the stock and raised its target price. However, July 18 there was a report that US-rails Union Pacific and Norfolk Southern were in merger talks and it was suggested Canadian rails were sold as investors positioned themselves for possible US takeover activity. Analysts do believe that such a merger would not be massively negative for CNR/CP. We would see it as a BUY but with a view to position size with tariff and economic uncertainty still very much present.