UPDATE: Credit Suisse Reiterates On Canadian Pacific Railway Limited On New Long-Term Targets

In a report published Monday, Credit Suisse analyst Allison M. Landry reiterated an Outperform rating on Canadian Pacific Railway Limited CP, and raised the price target from $229.00 to $265.00. In the report, Credit Suisse noted, “We have raised our FY14-FY16 EPS forecasts to $8.51, $11.03 and $13.63, from $8.52; $10.82 and $13.06 respectively. We are also introducing our FY17 and FY18 EPS forecasts of $17.41 and $20.25. Our DCF-derived target price is $265 (from $229), due to higher base year (2016) EBIT. Maintain Outperform Rating...If CP can improve network speed, pay employees at the highest levels in the industry (while still reducing labor costs), and attain high quality revenue with industry leading O.R.'s, the story is far from over.” Canadian Pacific Railway Limited closed on Friday at $214.67.