Market Overview

UPDATE: Canaccord Genuity Downgrades Canadian Pacific Railway Limited to Sell on Risk/Reward

Share:
Related CP
Canadian Pacific Shares Charge Higher As Raymond James Upgrades To Strong Buy
The Market In 5 Minutes: Elon Musk's Trillion-Dollar Bet
June 26th Inauguration For The Expanded Panama Canal Is Set (Seeking Alpha)

Canaccord Genuity downgraded Canadian Pacific Railway Limited (NYSE: CP) from Hold to Sell and raised the price target from $95.00 to $99.00.

Canaccord Genuity noted, "CP's share price is up 60% since the end of 2011, we believe almost certainly due to investor expectations that new CEO, Hunter Harrison, will drive substantial EPS growth over the next four years from margin improvement. … We are projecting nearly $10.00 in EPS in 2016 on a 66% OR, which we estimate will produce a $138 target. This suggests CP share price appreciation potential over the mid-term, but the implied 6.8% annual return over the next three years is modestly less than the projected 8.6% annual return to our three-year CN Rail target, and we believe there is materially less risk to our CN three-year target than our CP three-year target."

Canadian Pacific Railway Limited closed at $113.07 on Thursday.

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: Canaccord GenuityAnalyst Color Downgrades Pre-Market Outlook Analyst Ratings

 

Related Articles (CP)

View Comments and Join the Discussion!