(The following report appeared at NewRatings.com on August 31.)
NEW YORK — Analysts at RBC Capital Markets upgrade Canadian Pacific Railway Ltd (CP.NYS) from “sector perform” to “outperform.” The 12-month target price is set to C$81.
In a research note published this morning, the analysts mention that the current valuation of Canadian Pacific Railway’s stock presents an attractive investment opportunity, following the approximately 20% decline in the company’s share price since July 18. Demand in the company’s core bulk-products franchise has continued to be robust 3Q07-to-date, in view of the carload data for August, the analysts say. The company is favourably exposed to the healthy trends in the Western Canadian, RBC Capital Markets adds.