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Fly News Breaks for November 1, 2019
Nov 1, 2019 | 05:10 EDT
BMO Capital analyst Fadi Chamoun upgraded Canadian National Railway (CNI) to Outperform from Market Perform with a price target of C$130, up from C$123. There is a strong case to be made that the worst of the volume headwinds are here for or even behind the railroads, Chamoun tells investors in a research note. The analyst, who thinks volume growth momentum should pick up in the second half of 2020, is also upgrading his view on the rail sector. He says Canadian National Railway is a low-cost operator of a "high-quality and unique physical footprint," bringing it "durable competitive advantages and strong medium- to long-term growth fundamentals." Chamoun is reversing his September 2018 cautious call on the Railroads group. The analyst also continues to recommend Union Pacific (UNP) and Canadian Pacific (CP) with Outperform ratings. He keeps Market Perform ratings on Norfolk Southern (NSC) and Kansas City Southern (KSU).