Canaccord Maintains Hold On Canadian Pacific To Reflect The Stock’s Full Valuation

In a research note issued today, Canaccord analyst David Tyerman maintained a Hold rating on Canadian Pacific Railway Limited (CP) with a price target of $182.00, given the lack of near-term share price appreciation potential to his target (-5.1% one-year potential rate of return to our target including a 0.7% dividend yield). The analyst has not moved to a SELL rating as he continues to expect solid positive returns over the long run.

“In short, we think CP looks expensive versus its own history, the sector and the wider market. We believe the stock may warrant some valuation premium to its history, given the company’s higher ROIC, but CP looks expensive versus our DCF, which takes that into account”, Tyerman noted.

CP Chart

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