11:44 AM EDT, 03/27/2024 (MT Newswires) -- CIBC Capital Markets raised its price targets on Canadian National Railway Co. ( CNI ) to $183 from $177 (Neutral), and Canadian Pacific Kansas City Ltd. ( CP ) to $130 from $124 (Outperformer).

"We have adjusted our estimates for the Canadian rails as we mark to market current volume trends, which are better than we had expected," analyst Jessica Zhang said in a note to clients.

"For Q1/24, our EPS expectations are modestly below consensus estimates, reflecting a tougher winter versus last year and higher stock-based comp for CPKC," Zhang said. "We have raised our target multiples to reflect the volume momentum exiting the first quarter."

"While CPKC trades at a premium valuation, we view this as deserved given its industry-leading earnings growth as we look out through the balance of this decade," the analyst said.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 178.49, Change: +1.69, Percent Change: +0.96