Target RaisedScotia Capital analyst Konark Gupta raised his TFI International Inc. target to $235 from $225 with a “sector outperform” rating. The average is $193.88. “Freight markets are portraying a mixed yet promising picture,” he said. “Rail, air cargo and LTL [less-than truckload] volumes are sustaining year-over-year growth that started in Q3/23. However, LTL tonnage remains weak on declining weight per shipment, while the TL market has yet to find a true bottom (likely mid-2024). The sector remains fragile in light of the ongoing uncertainties, but it has not yet shown any major cracks despite sticky interest rates as perhaps normalizing inflation, rational behaviour and inventory destocking are providing support. Based on QTD trends, we have slightly raised Q1 estimates for CJT, CNR and CP, expecting a beat particularly from CJT. On the flip side, we have trimmed Q1 estimates for MTL and TFII to further below consensus. We don’t expect guidance revisions soon as companies are watching the macro, although MTL’s outlook seems conservative due to a pending M&A. TFII is still likely to initiate guidance in April, but it may start conservatively. Overall, we have raised targets for CNR (multiple expansion), CP (multiple expansion) and TFII (latest LTL tuck-in), while downgrading CP to SP from SO on overheated valuation concerns. We have a more favourable view on CJT (valuation), MTL (valuation) and TFII (catalysts).”