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Better railway connections for people and freight – such as this CP line through the Rocky Mountains near Banff, Alta. – is one idea to improve Canada’s infrastructure.
Better railway connections for people and freight – such as this CP line through the Rocky Mountains near Banff, Alta. – is one idea to improve Canada’s infrastructure.
(TODD KOROL/REUTERS)

Canadian investors’ love affair with rail keeps rolling

Buoyed by the latest stellar quarter, investors continue their love affair with Canadian railways. Both Canadian National Railway Co. and Canadian Railway Pacific Ltd. hit record highs, amid enthusiastic reports from analysts.

CN drew raves and analyst target upgrades after posting record volumes and beating profit forecasts. CP Rail won similar praise; the company’s third quarter “far exceeds expectations, with more to come,” exclaimed Benoit Poirier of Desjardins Securities, who somewhat belatedly upgraded the stock to a buy from a hold and raised his price target to $162.