Canadian National price target lowered to C$159 from C$167 at JPMorgan

JPMorgan lowered the firm’s price target on Canadian National to C$159 from C$167 and keeps a Neutral rating on the shares ahead of the Q3 report. The analyst says the outlook for transports has to get better for the stocks to work into year end. Near term, the firm expects a “slow grind higher” based on its recent industry discussions and updated mosaic of high frequency data points as overcapacity keeps freight rates lower for longer. Sentiment appears “mostly apathetic given the widespread fatigue from buying the cuts and calling the bottom of the rate cycle,” the analyst tells investors in a research note. Against this backdrop, JPMorgan is most positive on J B Hunt Transport Services (JBHT) into the print and add it as a “Positive Catalyst Watch” on domestic market share gains and solid September imports that sets the stage for a return to volume growth in Q4.