The Globe and Mail reports in its Tuesday edition that Scotia Capital analyst Konark Gupta, seeing "overheated valuation concerns," has downgraded Canadian Pacific Kansas City to "sector perform" from "sector outperform," "expecting potential normalization in the P/E multiple to offset anticipated earnings acceleration in 2025/2026 and resumption of shareholder returns in 2025." The Globe's David Leeder writes that Mr. Gupta sees a similar risk/reward at Canadian National Railway and CPKC." Mr. Gupta's CPKC share target rose to $184 from $173. Analysts on average target CPKC shares at $118.68. His CN target jumped to $126 from $120 with a "sector perform" call. Analysts on average target CN shares at $177.58. Mr. Gupta says in a note: "We expect CPKC to outperform Class 1 rails on year-over-year changes in Q1 revenue, OR [operating ratio] and EPS. We continue to forecast full-year EPS growth of 10 per cent for CN and 13.5 per cent for CPKC, consistent with their guidance of 10 per cent and double-digit. ... As a reminder, CN's guidance of mid single-digit RTM growth assumes a positive macro while CPKC's guidance of low single-digit RTM growth reflects caution and doubling of CPKC's synergy run-rate."