Canadian Pacific Railway (CP) Cut to Hold at Zacks Investment Research

Zacks Investment Research downgraded shares of Canadian Pacific Railway (NYSE:CP) (TSE:CP) from a buy rating to a hold rating in a research note published on Wednesday morning.

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.”

Other analysts have also recently issued reports about the company. Deutsche Bank set a $245.00 price objective on Canadian Pacific Railway and gave the company a buy rating in a research report on Friday, October 5th. TD Securities raised Canadian Pacific Railway from a hold rating to a buy rating in a research note on Friday, October 5th. Citigroup reaffirmed a buy rating and issued a $260.00 price target (up from $242.00) on shares of Canadian Pacific Railway in a research note on Friday, October 5th. Bank of America lifted their price target on Canadian Pacific Railway from $213.00 to $233.00 and gave the stock a buy rating in a research note on Monday, October 1st. Finally, Barclays reaffirmed a buy rating and issued a $235.00 price target on shares of Canadian Pacific Railway in a research note on Wednesday, September 26th. Three analysts have rated the stock with a hold rating and eighteen have given a buy rating to the stock. The company presently has a consensus rating of Buy and an average price target of $237.15.

Canadian Pacific Railway stock opened at $189.28 on Wednesday. The company has a market capitalization of $27.90 billion, a PE ratio of 21.56, a price-to-earnings-growth ratio of 1.39 and a beta of 0.91. Canadian Pacific Railway has a 12 month low of $166.36 and a 12 month high of $224.19. The company has a debt-to-equity ratio of 1.10, a current ratio of 0.68 and a quick ratio of 0.58.

Canadian Pacific Railway (NYSE:CP) (TSE:CP) last posted its quarterly earnings data on Thursday, October 18th. The transportation company reported $4.12 EPS for the quarter, beating the Zacks’ consensus estimate of $3.16 by $0.96. The business had revenue of $1.90 billion during the quarter, compared to analysts’ expectations of $1.89 billion. Canadian Pacific Railway had a return on equity of 28.71% and a net margin of 34.07%. The business’s revenue was up 19.0% compared to the same quarter last year. During the same period in the previous year, the business earned $2.90 earnings per share. As a group, equities analysts predict that Canadian Pacific Railway will post 10.82 EPS for the current fiscal year.

Large investors have recently modified their holdings of the company. Zions Bancorporation acquired a new position in Canadian Pacific Railway during the second quarter worth $134,000. Csenge Advisory Group acquired a new position in Canadian Pacific Railway during the third quarter worth $136,000. Tower Research Capital LLC TRC acquired a new position in Canadian Pacific Railway during the third quarter worth $149,000. Cerebellum GP LLC acquired a new position in Canadian Pacific Railway during the third quarter worth $192,000. Finally, Sawtooth Solutions LLC acquired a new position in Canadian Pacific Railway during the second quarter worth $207,000. 67.31% of the stock is currently owned by hedge funds and other institutional investors.

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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