(The Associated Press circulated the following on April 12, 2010.)
NEW YORK A Stifel Nicolaus analyst lowered his rating on shares of Canadian National Railway Co. on Monday, saying the stock had gotten too expensive.
Analyst John Larkin noted the stock has gained about 12 percent so far this year, compared with a 5 percent gain for the S&P 500. He lowered his rating to "Hold" from "Buy."
Larkin said the company has shown a stronger improvement in shipping volume than other large North American railroads.
Operational efficiencies like train speed and the time each train spends in the terminal have also improved faster than its peers, Larkin said.
"Despite our downgrade, we continue to believe that the company has done a superior job of removing excess cost from its network before and during the recessionary period," Larkin said. "In our view, the company is better positioned than most to take advantage of running improved unit volume through its network given its track record of operational excellence."
Shares fell 52 cents to $60.41 in morning trading Monday.
