UPDATE: Barclays Upgrades Canadian National Railway Company Amid Positive Sector View

In Monday's morning summary, Barclays analyst Keith Mori upgraded shares of Canadian National Railway CNI from Equal-weight to Overweight and raised the price target from $60 to $72.

The upgrade comes amid improving fundamentals in the sector. Mori noted that expansion across transports, i.e., rail volume up seven percent, U.S. trucking demand up three to four percent, small package markets up five percent and global trade up five to six percent, imply strong industrial demand.

Looking specifically at Canadian National, Mori says the company's revenue growth should remain in the top quartile and believes the company's second quarter earnings will paint a "meaningfully brighter picture" following "significant weather disruptions" in the first quarter.

Despite his bullish view, Mori warned of concerns regarding eastern coal outcomes.

Shares of Canadian National are up 1.06 percent in Monday's trading.