(The Associated Press circulated the following story by Stifel Nicolaus on February 2, 2010.)
DALLAS — Shares of Canadian Pacific Railway Ltd. rose Monday after the broader market rallied and Stifel Nicolaus upgraded the railroad’s stock to “hold” from “sell.”
Stifel Nicolaus analyst John G. Larkin said he wasn’t changing his estimates for CP’s 2010 and 2011 earnings, but he said the shares were no longer at enough risk of falling to merit the “sell” rating.
The shares gained $1.11, or 2.4 percent, to close Monday at $48.11.
Last week, Canadian Pacific said it earned $183 million in the fourth quarter on lower taxes and cost-cutting, and said markets remained uncertain. Revenue fell 13.7 percent.
Larkin said the earnings after items, 88 cents per share, beat expectations but the company gave cautious comments about 2010 volumes.
Canadian Pacific operates 14,000 miles of track in Canada and northern parts of the United States.