BMO Capital Markets Reiterates Market Perform, $84 PT on Canadian National Railway

BMO Capital Markets maintains its Buy rating and $84 price target on Market Perform-rated Canadian National Railway

as CTA announces 9.5% increase in grain freight rates for 2012-2013 crop year. BMO Capital Markets comments, "The Canadian Transportation Agency (CTA) has announced a 9.5% increase in the Volume-Related Composite Price Index (VRCPI), which is used in determining the revenue caps for CN and CP for the movement of western grain for the 2012-2013 crop year beginning August 1. The VRCPI takes into account forecasted costs for labour, fuel, material and other railway expenses." CNI closed at $84.30 on Monday.