CN upgraded to Outperform from Sector Perform at RBC Capital

RBC Capital upgraded CN to Outperform from Sector Perform with a price target of C$179, up from C$169. The company’s operations have “rebounded nicely” post strike and the stock’s valuation that is inexpensive relative to history, the peer group, and versus CP, the analyst tells investors in a research note. Further, the firm still believes CN has an attractive growth outlook, despite near-term weakness in the industrial economy. When combined with improved network fluidity, this sets the stage for “significant operating leverage,” adds RBC.