Benzinga | Jan 14, 2022 11:30AM EST

Deutsche Bank Turns Bullish On Canadian National Railway

* Deutsche Bank analyst Amit Mehrotra upgraded Canadian National Railway (NYSE:CNI) to Buy from Hold and raised the price target to $137 (an upside of 12%), from $129.

* Mehrotra mentions that the market is underappreciating the potential for positive, operational-led management change at Canadian National "after many years of underperformance."

* The analyst estimates the company's existing management and board have leftover $1 billion of profits "on the table" over the last six years, which is worth over $20 billion in equity value at today's valuation levels.

* Mehrotra says this reflects significant underperformance in price and service levels and believes management change will come over the next two months.

* Price Action: CNI shares are trading lower by 0.16% at $122.14 on the last check Friday.