CN price target raised to C$178 from C$160 at RBC Capital

RBC Capital raised the firm’s price target on CN (CNI) to C$178 from C$160 and keeps an Outperform rating on the shares. The company delivered an in-line result vs. consensus, though expectations for higher operating leverage following strong performance across U.S. peers did not materialize in Q1, leading to a post-earnings sell-off, the analyst tells investors in a research note. RBC adds, however, that it expects operating leverage to pick up through the course of the year and sees upside to guidance and consensus.