(Canwest News Service circulated the following on April 28, 2009.)
OTTAWA — Citigroup is sounding a cautious note on the railroad sector, citing narrowing pricing gains and regulatory concerns. It downgraded three companies in the sector.
Citi downgraded Canadian National Railway to “hold” from “buy” and Burlington Northern Santa Fe Corp. and Canadian Pacific Railway to “sell” from “hold.”
Noting the recent rally in Canadian National shares, Citi said the stock had risen 39% since the company’s early March lows and 11% year-to-date.