Railway Stock Rises After Discarding Billion-Dollar Offer

The company had until Friday to improve its offer

Assistant Editor
Sep 15, 2021 at 9:52 AM
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Canadian National Railway Co (NYSE:CNI) has announced that it will not improve its offer to acquire Kansas City Southern (KSU), after the company chose Canadian Pacific's (CP) $31 billion rival bid on Sunday, Sept. 12. Canadian National had until Friday to amend its $29.6 billion offer, but was under pressure from investors to scrap the deal amid regulatory concerns. At last check, CNI was up 3.4% to trade at $118.79. 

The stock is fresh off six straight sessions in the red, following its Sept. 3 record high of $128.41, with yesterday's pullback nearing the ascending 20-day moving average at the $114 level. Year-to-date, the equity was up 4.6% heading into today. 

Of the 19 analysts in coverage, 11 sport a tepid "hold" rating on Canadian National stock, with eight a "buy" or better. It's worth noting that yesterday, TD Securities downgraded the stock to "hold" from "buy," citing the equity's recent gains. Meanwhile, the 12-month consensus price target  of $120.74 is a 5.1% premium to last night's close. 

 

 

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