Bank of America upgrades Canadian National Railway to Buy on strong volume growth and attractive valuation.

Bank of America upgraded Canadian National Railway's stock rating from Neutral to Buy, citing better-than-expected volume gains and improved service under new COO Patrick Whitehead. The railway's revenue ton miles and carloads have exceeded targets, driven by record grain shipments and strong intermodal volumes. Despite these gains, the stock trades at a discount compared to peers, suggesting further upside potential. The price target was raised to US$122, supported by a $3 billion buyback program and modestly increased earnings forecasts for 2026.