BMO Capital Upgrades This Canadian Transportation Company To Outperform - Read Why - Canadian National Railway (NYSE:CNI)

BMO Capital analyst Fadi Chamoun upgraded Canadian National Railway Co CNR CNI to Outperform from Market Perform.
The analyst maintained the Price Target for CNR at C$170.
While maintaining the C$170 target price, the analyst sees a potential upside of C$190-C$200 if the demand environment remains favorable and the company executes on the large self-help opportunity.
In a more muted demand environment, the analyst believes the downside is limited as initiatives to improve efficiency and revenue quality should enable the company to defend its earnings power.
According to Chamoun, 2Q22 operating/service and volume trends are also ahead of expectations, prompting to boost in the forecast.
Price Action: CNR shares are trading lower by 1.40% at C$145.51 on TSX, and CNI is lower by 1.89% at $112.97 on NYSE on the last check Wednesday.