Canadian National price target raised to C$185 from C$175 at BMO Capital

BMO Capital analyst Fadi Chamoun raised the firm’s price target on Canadian National to C$185 from C$175 and keeps an Outperform rating on the shares. The company’s Q4 EBIT results topped estimates thanks to its “stronger yields”, but its growth framework in FY24 is more volume dependent relative to BMO’s expectations, reflecting cost pressures in labor and depreciation, the analyst tells investors in a research note. BMO further cites improving demand environment being potentially supportive of valuation upside, along with the early innings of an earnings upcycle for Canadian National.