CANADIAN PACIFIC RAI

CP
Delayed Toronto Stock Exchange - 04:15 2022-12-09 pm EST
107.77 CAD -1.16%

RBC Capital Markets Updates Price Targets For Canadian National Railway, Canadian Pacific Railway

09/23/2022 | 10:35am
(MT Newswires) -- RBC Capital Markets on Friday decreased Canadian National Railway Co. (CNR.TO)'s price target to $161 from $163 while reiterating Canadian Pacific Railway Ltd. (CP.TO)'s price target at $115.

RBC made the updates in its broader report about third-quarter estimates for carload trends, which incorporated the impact of recessionary headwinds and the overall demand environment.

Heading into the third-quarter earnings season, RBC highlighted operating readiness at Canadian rails ahead of strong demand in the fourth quarter, as well as macro uncertainty and service improvement.

RBC maintained its EPS estimate for CNR at $2.01, above consensus of $1.98, while cutting the EPS forecast for CP to $1.04 from $1.07, although it is still above consensus of $1.01.

RBC recommended CP while noting that it has a highly positive view of its planned merger with Kansas City Southern.

"We view the network advantage as the most compelling factor, and also view positively the increased diversification on a business and geographic basis," RBC said.

"We view the $1B in announced synergies as achievable, and as representing meaningful upside to consensus expectations."

Price: 93.64, Change: -2.33, Percent Change: -2.43

MT Newswires 2022
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