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

Zacks Investment Research cut 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 equities research analysts also recently issued research reports about the company. Stephens reiterated a hold rating and issued a $239.00 price objective on shares of Canadian Pacific Railway in a report on Monday, October 8th. Royal Bank of Canada reiterated an outperform rating on shares of Canadian Pacific Railway in a report on Friday, October 5th. Stifel Nicolaus boosted their price objective on Canadian Pacific Railway from $207.00 to $247.00 and gave the company a hold rating in a report on Sunday, October 7th. Cowen boosted their price objective on Canadian Pacific Railway from $225.00 to $236.00 and gave the company an outperform rating in a report on Monday, October 8th. Finally, Barclays reiterated a buy rating and issued a $235.00 price objective on shares of Canadian Pacific Railway in a report on Wednesday, September 26th. Three equities research analysts have rated the stock with a hold rating and eighteen have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of Buy and a consensus target price of $237.15.

CP stock opened at $189.28 on Wednesday. The company has a current ratio of 0.68, a quick ratio of 0.58 and a debt-to-equity ratio of 1.10. The firm has a market capitalization of $27.90 billion, a P/E ratio of 21.56, a PEG 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.

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

A number of hedge funds and other institutional investors have recently modified their holdings of CP. Strs Ohio acquired a new position in shares of Canadian Pacific Railway during the 3rd quarter worth about $3,170,000. Korea Investment CORP boosted its position in shares of Canadian Pacific Railway by 18.1% during the 2nd quarter. Korea Investment CORP now owns 71,163 shares of the transportation company’s stock worth $13,033,000 after acquiring an additional 10,900 shares in the last quarter. Gateway Investment Advisers LLC boosted its position in shares of Canadian Pacific Railway by 0.5% during the 3rd quarter. Gateway Investment Advisers LLC now owns 75,264 shares of the transportation company’s stock worth $15,951,000 after acquiring an additional 342 shares in the last quarter. Private Advisor Group LLC acquired a new position in shares of Canadian Pacific Railway during the 2nd quarter worth about $370,000. Finally, Natixis acquired a new position in shares of Canadian Pacific Railway during the 2nd quarter worth about $348,000. Institutional investors own 67.31% of the company’s stock.

About Canadian Pacific Railway

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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