RBC Capital Markets on Thursday raised its price target on Canadian Pacific Kansas City Ltd. (CP.TO) to CA$146 from CA$145, and lowered its target on Canadian National Railway Co. (CNR.TO) to CA$198 from CA$205.

Analyst Walter Spracklin maintained an outperform rating on the Canadian railroads.

"Overall, we see CN as delivering the best earnings upside versus consensus given solid volumes and operating metrics, and we believe this sets the stage for a Q3 beat and potential guidance raise," Spracklin said in a note to clients.

"We could see negative sentiment in CP shares as we expect street earnings to move lower into earnings, although flag the reduction to our estimates is mostly fuel driven," the analyst said.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)