Railroad operators have reported slight improvement in the overall volume trend across the board, along with intermodal growth, Bernstein said as part of its weekly carload summary.
Lead analyst David Vernon noted the 4W average volume growth is 1–4 percent higher than the 13W average growth, with Canadian National Railway (USA)
For coal, the analyst believes the rate of change in 4W average coal volume is improving across the board, except in Canadian Pacific and Kansas City Southern
Meanwhile, the brokerage sees improving merchandise volume growth, except in CSX Corporation
Further, Vernon said intermodal growth trends are improving by 7.6 percent for CSX, 2.8 percent for Norfolk Southern and -2.6 percent for Union Pacific, with the rest of the group's trend being flat to slightly negative.
“Weakness in intermodal volume is primarily due to weaker international traffic, and we continue to think that domestic activity should rebound into 2017 based on what we are seeing in spot rate data and hearing from larger shippers,” Vernon wrote in a note.
- Canadian National Railway: Market Perform with a target price of $68.
- Canadian Pacific: Outperform, $171.
- CSX: Market Perform, $32.
- Norfolk Southern: Market Perform, $96.
- Union Pacific: Outperform, $110.
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|Oct 2016||Raymond James||Downgrades||Outperform||Market Perform|
|Sep 2016||Loop Capital||Initiates Coverage on||Hold|
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