Canadian Pacific Extends Multi-Year Contract with Canadian Tire

This article was originally published on
Canadian Pacific Railway (TSE: CP) announced Tuesday a multi-year extension with Canadian Tire (TSE: CTC.A) to continue to transport the retailer’s goods in Canada. To support the efficient movement of CTC goods and reduce carbon emissions, CP will begin direct service to the Ashcroft Terminal in Ashcroft, B.C., reducing the need to shift volumes to trucks. The deal builds on more than 90 years of shared successes the companies have had in effectively servicing CTC dealers and corporate stores. In addition, it allows CTC to explore procurement and options opportunities through the broad reach of CP’s network.

Management Commentary 

CP president and CEO Keith Creel said, “CP is proud to continue our near-century-long commercial relationship with Canadian Tire, another iconic Canadian brand. As the single largest container importer in Canada, CTC will benefit from CP’s leading service, reliability and network capacity across Canada.”

Wall Street’s Take 

On December 17, Raymond James analyst Steven Hansen maintained a Buy rating on CP and raised its price target to C$105 (from $98). This implies 13.8% upside potential. Overall, consensus on the Street is that CP is a Strong Buy based on 11 Buys and three Holds. The average Canadian Pacific price target of C$109.12 implies 18.3% upside potential to current levels.

TipRanks’ Smart Score

CP scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock returns are very likely to beat the overall market.
Related News:  CP Executes Long-Term Agreement with Canpotex

Stay Ahead of Everyone Else

Get The Latest Stock News Alerts