The Globe and Mail reports in its Friday edition that BMO Capital Markets analyst Fadi Chamoun has reaffirmed his "outperform" recommendation for Canadian Pacific Kansas Southern. The Globe's David Berman writes that Mr. Chamoun trimmed his share target by $2 to $128. Mr. Chamoun says in a note, "The freight cycle remains muted and near-term trends are underperforming even our below consensus expectations across our entire coverage in freight transportation." For example, shipping volumes are on track to decline 5.5 per cent in the second quarter, compared with the same quarter last year. That marks a sharper decline from an earlier estimate of a 1.4-per-cent decline. Mr. Chamoun adds: "While some pressure should prove transitory (grain, potash, and to a lesser degree autos), performance in several segments is underperforming including intermodal (specifically domestic intermodal), chemicals/plastics/petroleum, and residential construction (forest products) reflecting a weak macro." He cut his earnings estimate in the second quarter to 92 cents per share from $1.06. However, he remains upbeat about the stock, given the longer-term benefits from the recent combination of the two railways, following a merger.