(The following story by David Pett appeared on the National Post website on June 3.)
OTTAWA — Expect Canadian Pacific Railway Ltd. to benefit from the rise in coal prices starting in fiscal 2009, says Canaccord Adams analyst Tom O. Varesh.
He told clients in a note that CP’s coal revenue per carload will increase by 40% next year, resulting in a bump to overall 2009 earnings from $5.32 to $6.07 per share.
Mr. Varesh’s 2008 EPS, meanwhile, falls from $4.52 to $4.39, due to increasing WTI prices and crack spreads.
The analyst increased his price target from $80 to $91 his left his “buy” recommendation unchanged.