RBC Capital Markets lowered its price target on Canadian National Railway Co. (CNR.TO, CNI) to $165 from $171 and on Canadian Pacific Kansas City Ltd. (CP.TO, CP) to $122 from $128 on Monday.
Analyst Walter Spracklin maintained an Outperform rating on both Canadian railway companies, updating his Q1 estimates.
"CPKC continues to trade at a premium to the group - however, this has come off meaningfully since the US election and we view as a compelling opportunity," Spracklin said in a note to clients.
"CN trades below the group despite historically having traded at a premium, which we believe has created an attractive buying opportunity given the network is running very well exiting a tough February as evidenced by car velocity trends," the analyst said.
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