Company News

BUZZ-CN Rail: Analysts say lowered outlook not as bad as feared

** Analysts view Canada’s largest railroad co’s lowered outlook as better than feared

** At least 3 brokerages raise PT on stock, while 3 trim PT

** Brokerage Raymond James maintains “outperform”; says issues are lingering, but recovery from operating challenges is underway

** Firm’s most acute operational challenges are poised to fade through 2018 and the stock continues to trade at an attractive level vs its closest peers, the market, and its historical range - Raymond James

** Continued capacity ramping and impressive momentum in contract renewal pricing should lead to improved results throughout the rest of the year - Cowen

** RBC analyst has a positive long-term view on CNR, driven by co’s strong track network and attractive competitive environment; raises PT by $2 to $107

** Desjardins, which cut PT by $4 to $78, says it remains bullish on CN in light of the attractive potential return, which is 18 pct to their PT

** Company posted a 16.2 percent fall in quarterly profit as operating expenses shot up and co cut its 2018 outlook as capacity limits strained its ability to meet high demand

** CN Rail’s U.S.-listed and TSX-listed shares were trading flat on their respective exchanges

** CNI shares down 8.4 pct this year (Reporting by Medha Singh in Bengaluru)