Canadian National Railway (CNI) shares have upside potential amid market share gains, auto and intermodal volume growth, and improving service, BofA Securities said in a Thursday research note.

While underlying volume fundamentals could slow down in Q2 given upfront grain moves, it should outpace mix impacts, the loss of carbon tax revenue almost a year ago, and fuel surcharge pressure, according to the note.

BofA said it raised its Q1 and 2026 EPS guidance to 1.77 Canadian dollars ($1.28) and CA$7.80, respectively, from CA$1.74 and CA$7.75 earlier.

The brokerage upgraded the stock to buy from neutral and raised its price target to $122 per share from $117.

Price: 109.53, Change: +1.87, Percent Change: +1.74