Canadian Pacific Railway Limited (NYSE:CP) (TSE:CP) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Wednesday, July 12th. The brokerage currently has a $181.00 price target on the transportation company’s stock. Zacks Investment Research‘s price target indicates a potential upside of 18.29% from the stock’s previous close.
According to Zacks, “Shares of Canadian Pacific have outperformed the Zacks-categorized Transportation-Rail industry in the last one month. The company's efforts to reward investors through share buybacks and increased dividend payments is impressive. In May 2017, the company raised its quarterly dividend per share by 12.5%. The board also cleared a new share buyback program. The improvement in the coal scenario should aid second quarter results, scheduled to be released on Jul 19. The positive sentiment regarding the stock can be gauged from the 5.12% increase in the Zacks Consensus Estimate for the second quarter to $2.05 per share over the last month. The company still expects earnings per share to grow in high-single digits in 2017, led by an expected increase in volumes and cost-control efforts. Operating ratio is also expected to improve in 2017. Its high debt levels, however, raise concerns. “
A number of other equities research analysts have also weighed in on the company. Stifel Nicolaus boosted their price target on Canadian Pacific Railway Limited from $167.00 to $184.00 and gave the stock a “buy” rating in a research note on Tuesday, July 11th. BidaskClub upgraded Canadian Pacific Railway Limited from a “hold” rating to a “buy” rating in a research report on Saturday, July 1st. Credit Suisse Group reiterated an “outperform” rating and issued a $178.00 target price (up previously from $171.00) on shares of Canadian Pacific Railway Limited in a research report on Sunday, May 28th. Citigroup Inc. reiterated a “buy” rating and issued a $180.00 target price (up previously from $165.00) on shares of Canadian Pacific Railway Limited in a research report on Sunday, May 14th. Finally, Loop Capital dropped their target price on Canadian Pacific Railway Limited from $157.00 to $119.00 in a research report on Monday, April 24th. One equities research analyst has rated the stock with a sell rating, four have given a hold rating and twenty have given a buy rating to the company. The company presently has an average rating of “Buy” and an average price target of $187.37.
Shares of Canadian Pacific Railway Limited (NYSE:CP) traded down 0.95% during mid-day trading on Wednesday, hitting $153.02. 664,251 shares of the stock were exchanged. The stock’s 50-day moving average is $159.84 and its 200-day moving average is $153.65. The stock has a market capitalization of $22.35 billion, a price-to-earnings ratio of 17.30 and a beta of 1.09. Canadian Pacific Railway Limited has a 52 week low of $139.29 and a 52 week high of $167.52.
Canadian Pacific Railway Limited announced that its board has authorized a share buyback plan on Wednesday, May 10th that allows the company to repurchase 4,380,000 outstanding shares. This repurchase authorization allows the transportation company to repurchase shares of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s board of directors believes its shares are undervalued.
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Hedge funds have recently bought and sold shares of the stock. Boston Common Asset Management LLC increased its stake in Canadian Pacific Railway Limited by 1.1% in the first quarter. Boston Common Asset Management LLC now owns 23,789 shares of the transportation company’s stock worth $3,495,000 after buying an additional 260 shares during the period. Reliance Trust Co. of Delaware boosted its position in shares of Canadian Pacific Railway Limited by 17.5% in the first quarter. Reliance Trust Co. of Delaware now owns 4,825 shares of the transportation company’s stock valued at $709,000 after buying an additional 720 shares in the last quarter. Congress Asset Management Co. MA boosted its position in shares of Canadian Pacific Railway Limited by 4.5% in the first quarter. Congress Asset Management Co. MA now owns 46,482 shares of the transportation company’s stock valued at $6,829,000 after buying an additional 2,010 shares in the last quarter. Quadrature Capital Ltd purchased a new position in shares of Canadian Pacific Railway Limited during the fourth quarter valued at about $2,391,000. Finally, Viking Fund Management LLC boosted its position in shares of Canadian Pacific Railway Limited by 5.3% in the first quarter. Viking Fund Management LLC now owns 100,000 shares of the transportation company’s stock valued at $14,692,000 after buying an additional 5,000 shares in the last quarter. Hedge funds and other institutional investors own 70.54% of the company’s stock.
About Canadian Pacific Railway Limited
Canadian Pacific Railway Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada and the United States. The Company operates through rail transportation segment. The Company’s transports bulk commodities, merchandise freight, and intermodal traffic over a network of approximately 12,400 miles.
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