Transportation stocks seen rising as demand bottoms out - analysts

US Xpress Enterprises

03/06/2020 19:35

** Shares of Canadian railroad operators Canadian National
Railway  CNR.TO  and Canadian Pacific Railway  CP.TO  rise 2.5%
and 2.6%, respectively; U.S. railroad operators CSX Corp
 CSX.O , Kansas City Southern  KSU.N  and Union Pacific  UNP.N 
shares gain between 3.1% and 4%
    ** BofA Global Research raises price objectives on rail
stocks by 12% on an average, saying that "rails are aggressively
managing costs down and remain prepared for the upturn"
    ** For investors interested in quality businesses with an
attractive risk-reward profile, we believe rails represent a
sound investment - BofA
    ** BMO Capital Markets says demand appears to have bottomed
in rail sector and it expects volumes to gradually strengthen as
North American economy re-launches
    ** Says it continues to favour UNP, CNR and CP
    ** BofA also raised rating on trucking company C.H. Robinson
Worldwide  CHRW.O  to "neutral" and on less-than-truckload
shipping co ArcBest  ARCB.O  to "buy", saying that medium-term
prospects for both cos has improved in post-COVID-19 world
    ** Raises price objectives on truck stocks by 20% on an
average
    ** Says it continues to favor Knight-Swiſt  KNX.N  and TFI
International  TFII.TO  in the truckload segment 
    ** Notes that largest upside in a recovery could be in
stocks such as ARCB and U.S. Express Enterprises  USX.N    

 (Reporting by Devbrat Saha)
 ((Devbrat.Saha@thomsonreuters.com; +91 8061822770 (direct),
+1-646-223-8780 (extension 2770);))