Market Overview

UPDATE: National Bank Financial Downgrades Canadian Pacific Railway Limited to Underperform on Valuation

Share:
Related CP
Barclays Sees Brexit Effects Spreading To Transport Stocks
Canadian Pacific Shares Charge Higher As Raymond James Upgrades To Strong Buy
Game Plan For The Week - Cramer's Mad Money (6/24/16) (Seeking Alpha)

National Bank Financial lowered its rating on Canadian Pacific Railway Limited (NYSE: CP) from Sector Perform to Underperform with an unchanged $84 price target.

National Bank Financial commented, "While we have confidence in CP's ability to significantly improve profitability in the coming years, we believe that with the 6% move higher by the stock yesterday that it is running ahead of itself. … The economic outlook remains cloudy, particularly as it relates to key commodities. For instance, Teck, which is CP's primary customer for coal, guided yesterday for coal production volumes at the low end of its range. Other coal producers have also noted weakness in metallurgical coal demand. Potash is also a key uncertainty for CP, which will also face the negative y/y comparables of the loss of a portion of Canpotex volumes in the next few quarters."

Canadian Pacific Railway Limited closed at $93.53 on Wednesday.

Latest Ratings for CP

DateFirmActionFromTo
Jun 2016Raymond JamesUpgradesOutperformStrong Buy
Jun 2016Morgan StanleyAssumesOverweight
May 2016CLSAInitiates Coverage onUnderperform

View More Analyst Ratings for CP
View the Latest Analyst Ratings

Posted-In: National Bank FinancialAnalyst Color Downgrades Intraday Update Analyst Ratings

 

Related Articles (CP)

View Comments and Join the Discussion!