(Reuters circulated the following on May 25, 2010.)
NEW YORK — Desjardins Securities upgraded Canadian Pacific Railway Ltd. to “buy” from “hold,” and said rail fundamentals remained strong with volumes continuing to recover.
Desjardins analyst Benoit Poirier said the company would benefit from a weaker Canadian dollar — as it prices some contracts in U.S. dollars — and lower crude oil prices.
“Moreover, we believe that Canadian Pacific’s announcement of a dividend increase and higher capital spending in 2010 emphasizes the company’s confidence in the recovery,” Poirier said in a note to clients.
Poirier kept his C$64.00 price target on Canadian Pacific stock.
On May 20, Canada’s second biggest railway raised its quarterly dividend by 9 percent and increased its 2010 capital spending budget.
Calgary, Alberta-based Canadian Pacific’s shares closed at C$56.30 Friday on the Toronto Stock Exchange.