Canadian Pacific Railway (NYSE:CP) (TSE:CP) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Wednesday.
According to Zacks, “Canadian Pacific is being aided by the upbeat freight scenario as bulk of its revenues are derived from this source. Freight revenues have increased 10.2% year over year in the first nine months of 2018. Strong freight revenues are expected to boost top line results in the final quarter of 2018 as well. Additionally, the company's efforts to reward shareholders thorugh dividends and share buybacks are impressive. We are also encouraged by the agreements reached by the company this year with various labor groups. On the flip side, high operating expenses have been hurting the company for quite some time and expected to dent bottom-line growth in the final quarter as well. The company's high debt levels add to the woes. In fact, shares of the company have underperformed its industry on a year-to-date basis.”
A number of other equities research analysts also recently commented on CP. ValuEngine upgraded Canadian Pacific Railway from a “hold” rating to a “buy” rating in a research report on Tuesday, September 4th. Barclays restated a “buy” rating and issued a $235.00 target price on shares of Canadian Pacific Railway in a research report on Wednesday, September 26th. Bank of America lifted their target price on Canadian Pacific Railway from $213.00 to $233.00 and gave the company a “buy” rating in a research report on Monday, October 1st. Royal Bank of Canada restated an “outperform” rating on shares of Canadian Pacific Railway in a research report on Friday, October 5th. Finally, Citigroup restated a “buy” rating and issued a $260.00 target price (up previously from $242.00) on shares of Canadian Pacific Railway in a research report on Friday, October 5th. Three analysts have rated the stock with a hold rating and eighteen have issued a buy rating to the company. Canadian Pacific Railway presently has a consensus rating of “Buy” and a consensus price target of $237.15.
Canadian Pacific Railway (NYSE:CP) (TSE:CP) last announced its quarterly earnings data on Thursday, October 18th. The transportation company reported $4.12 EPS for the quarter, topping the Zacks’ consensus estimate of $3.16 by $0.96. Canadian Pacific Railway had a return on equity of 28.71% and a net margin of 34.07%. The firm had revenue of $1.90 billion for the quarter, compared to the consensus estimate of $1.89 billion. During the same quarter last year, the business posted $2.90 earnings per share. The firm’s revenue was up 19.0% compared to the same quarter last year. On average, research analysts predict that Canadian Pacific Railway will post 10.82 earnings per share for the current year.
Several hedge funds and other institutional investors have recently modified their holdings of CP. Zions Bancorporation acquired a new stake in shares of Canadian Pacific Railway in the second quarter valued at $134,000. Csenge Advisory Group acquired a new stake in shares of Canadian Pacific Railway in the third quarter valued at $136,000. Tower Research Capital LLC TRC acquired a new stake in shares of Canadian Pacific Railway in the third quarter valued at $149,000. Cerebellum GP LLC acquired a new stake in shares of Canadian Pacific Railway in the third quarter valued at $192,000. Finally, Sawtooth Solutions LLC acquired a new stake in shares of Canadian Pacific Railway in the second quarter valued at $207,000. 67.31% of the stock is owned by institutional investors and hedge funds.
Canadian Pacific Railway Company Profile
Canadian Pacific Railway Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada and the United States. The company transports bulk commodities, including grain, coal, potash, fertilizers, and sulphur; and merchandise freight, such as finished vehicles and machineries, automotive parts, chemicals and plastics, petroleum and crude products, and metals and minerals, as well as forest, industrial, and consumer products.
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