Canadian National price target raised by $4 at Citi, here’s why

Citi raised the firm’s price target on Canadian National to $121 from $117 and keeps a Neutral rating on the shares. The analyst spotlights the U.S. rails as a favorite sector in transports heading into 2024. After two years of volume normalization across transports and significant investment in service by the rails, the setup for volume growth is good and the companies are “primed to generate better than average operating leverage,” the analyst tells investors in a research note. The firm says that macro concerns remain an overhang, current demand across consumer and industrial end markets support volume growth, which is likely to accelerate through the middle of 2024. Union Pacific (UNP) is Citi’s top pick followed by Norfolk Southern (NSC).