Raymond James raised its price target on Canadian National Railway (CNR.TO) to C$198 from C$170, and on Canadian Pacific Kansas City (CP.TO) to C$140 from C$125 on Tuesday.
Analyst Steve Hansen maintained a Outperform rating on both Canadian railroad companies ahead of their quarterly results.
"Canadian rail traffic exceeded expectations (again) in 2Q26, driven by sustained grain, energy/chemicals and automotive growth, which more than offset weakness in coal, forestry and a still-muted intermodal recovery at CN," Hansen said in a note to clients.
Traffic strengthened in June versus a "typical seasonal fade," the analyst said. "We remain constructive on both carriers," Hansen said. "Falling fuel and FX rates are also expected to introduce incremental earnings tailwinds through 2H26."
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