Analysts rate Canadian Pacific Railway Limited(CP:NYE) with a Strong Buy, $96 target

STA Research
by: STA Research

Analysts rate Canadian Pacific Railway Limited to a consensus Strong Buy rating with a target price of $96.00 per share.

STA Research rates Canadian Pacific Railway Limited with a Hold rating and sets the target price at $85 on the company’s stock.

Raymond James Capital downgrades the company to Market Perform from Outperform, and maintained the $105 target.

Based on the Canadian Pacific Railway Limited stock forecasts from 12 analysts, the average analyst target price for Canadian Pacific Railway Limited is USD 97.00 over the next 12 months. Canadian Pacific Railway Limited’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Canadian Pacific Railway Limited is Neutral, which is based on 7 positive signals and 6 negative signals. At the last closing, Canadian Pacific Railway Limited’s stock price was USD 79.91. Canadian Pacific Railway Limited’s stock price has changed by +2.12% over the past week, +6.53% over the past month and -79.18% over the last year.

Canadian Pacific Railway Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada and the United States. Canadian Pacific Railway Limited was incorporated in 1881 and is headquartered in Calgary, Canada.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Low debt

The company is less leveraged than its peers and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

Compared to its sector, this stock has shown top quartile earnings growth in the previous 5 years.

Superior Revenue Growth

Compared to its sector, this stock has shown top quartile revenue growth in the previous 5 years.

Superior Dividend Growth

This stock has shown top quartile dividend growth in the previous 5 years compared to its sector

What we don’t like:

Poor risk-adjusted returns

This company is delivering below median risk-adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median total returns

The company has underperformed its peers on annual average total returns in the past 5 years.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced on a cash flow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Overpriced on a free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

 

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