Morningstar maintains Canadian Pacific Railway Ltd with a Sell rating and raises the target price to $84 from $82 on the company’s stock.
CIBC maintains the Outperform rating on Canadian Pacific Railway Ltd and raises the target price to $110 from $106.
Based on the Canadian Pacific Railway Ltd stock forecasts from 10 analysts, the average analyst target price for Canadian Pacific Railway Ltd is CAD 98.10 over the next 12 months. Canadian Pacific Railway Ltd’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of Canadian Pacific Railway Ltd is Slightly Bullish , which is based on 6 positive signals and 5 negative signals. At the last closing, Canadian Pacific Railway Ltd’s stock price was CAD 103.50. Canadian Pacific Railway Ltd’s stock price has changed by +2.51% over the past week, +10.66% over the past month and +12.13% over the last year.
What we like:
Superior risk adjusted returns
This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.
High dividend returns
The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis , for investors seeking high income yields.
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
This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.
Superior Revenue Growth
This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.
What we don’t like:
Below median total returns
The company has under performed its peers on annual average total returns in the past 5 years.
Overpriced compared to earnings
The stock is trading high compared to its peers on a price to earning basis and is above the sector median.
Overpriced on cashflow 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 to buy.
The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.
Overpriced on 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 to buy.
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