Canadian National price target raised to $127 from $115 at Stifel

Stifel raised the firm’s price target on Canadian National to $127 from $115 and keeps a Hold rating on the shares. Carloads “have been going from bad to worse,” says the firm, which expects Q2 carload volumes will come in below 2022 levels, driven by weakness in intermodal and lumber products. However, despite drift in volume and likely earnings, Class 1 rail equities “have held in well and in some cases strengthened as the market believe/hopes of a much stronger back half of the year,” the analyst tells investors in a preview note for the group.