CIBC Capital Markets raised its price target on Canadian National Railway Co. (CNR.TO) to $182 from $164.
Analyst Kevin Chiang maintained an Outperformer rating on shares of the Canadian Class I railway following CIBC's Spring Industrial Tour and visit to CN's facilities in Winnipeg, Manitoba, which included several members of the senior management team.
"Our key takeaways from the tour were: 1) Winnipeg is strategically important to CN's growth strategy as it is strategically located with the capacity to absorb increased volumes; 2) CN operates a large maintenance and mechanical repair footprint in Winnipeg at the historical Transcona Yard which acts as a source of cost savings and increased operational reliability; and 3) we had a firsthand experience on how CN continues to advance its safety culture," Chiang said in a note to clients.