Canadian National price target lowered to $128 from $130 at Barclays

Barclays lowered the firm’s price target on Canadian National to $128 from $130 and keeps an Equal Weight rating on the shares as part of a Q2 preview for the North American transportation sector. While truck freight rates “remain stubbornly low,” non-coal rail volume growth “is impressive” and rail yields could surprise to the upside following a challenging quarter for broad transport equity performance, the analyst tells investors in a research note. The firm says freight fundamentals remained mostly range bound during Q2 as stronger import activity driven by retailer order growth was offset by softer coal loadings for railroads and over-supplied trucking markets kept contract rates low.