UPDATE: JP Morgan Upgrades Canadian National Railway on Growth Drivers
In a report published in Friday, JP Morgan analyst Thomas Wadewitz upgraded Canadian National Railway (NYSE: CNI) from Underweight to Neutral and raised the price target from $96.00 to $110.00.
In the report, JP Morgan stated, "Due to its greater reach North into the oil sands and South to US Gulf Coast refineries, CNI has one of the strongest crude by rail growth stories over the next several years. While export coal is soft at the present time, we believe that CNI also has opportunity for growth in the medium term as the coal mines it serves in BC and in Illinois are low cost versus some of their primary competitors. CNI's intermodal growth story is sensitive to competition from other rails, but we see clear catalysts for growth in the medium term. CNI also has favorable cyclical leverage to lumber & construction products."
Canadian National Railway closed on Thursday at $102.82.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.