Information Provided By:
Fly News Breaks for December 17, 2019
Dec 17, 2019 | 07:56 EDT
Loop Capital analyst Rick Paterson downgraded Canadian Pacific (CP) to Hold from Buy with C$340 price target due to the recent run-up in its stock price to within 3% of his price target. Despite the rating change, the analyst remains positive on the railroad fundamentals, saying Canadian Pacific is the "best-in-class operator in its industry." Paterson adds that while the company's volumes quarter-to-date have been "a little soft", they are still "significantly better" than most of its U.S. peers and offer better performance than the strike-impacted Canadian National (CNI).
News For CP;CNI From the Last 2 Days
May 19, 2022 | 05:44 EDT
Citi analyst Christian Weatherbee lowered the firm's price target on Canadian National to $132 from $140 and keeps a Buy rating on the shares. The analyst downgraded three stocks in U.S. rails and lowered estimates across the board for the group. He sees near-term risk in a decelerating freight and economic environment and notes that rail valuations have actually improved relative to the market while earnings growth expectations are at their highest. A more cautious approach is warranted given "freight warning signs" and "persistent" service issues, Wetherbee tells investors in a research note. He believes these can result in a "delayed operational reaction to a true downturn."