RBC raises Canadian National Railway target to C$160, citing strong efficiency and growth potential.

RBC Capital has raised its price target for Canadian National Railway (CN) to C$160, above the Street consensus of $110.25 USD, due to CN's improved operating efficiency and strong volume trends. CN's Q4 2025 results showed a 250 basis point improvement in operating ratio and a 14% increase in labor productivity, closing the gap with peers. Key growth drivers include increased network capacity, record grain shipments, and rising intermodal revenue. CN also announced a new share repurchase program and a dividend increase, supporting shareholder returns. Achieving the target requires volume growth in H2 2026, EPS growth, and a market re-rating amid macroeconomic risks.