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Rating Summary:
10 Buy, 12 Hold, 2 Sell
Rating Trend: Down
Today’s Overall Ratings:
Up: 10 | Down: 28 | New: 11
TD Securities downgraded Canadian Pacific Railway Limited (NYSE: CP) from Hold to Reduce but raises its price target from C$92 to C$102 following adjusted Q4 EPS of $1.28, in line with the consensus estimate of $1.28 and slightly below forecast of $1.32. The company guided to high single-digit revenue growth in 2013, and a low 70s operating ratio. Pension expense is expected to total $50mm-$60mm in 2013 and 2014 and $90mm-$110mm in 2015 and 2016 versus previous guidance of $140mm-$150mm through 2016. CP forecasts 2013 EPS growth “in excess” of 40% versus 2012 adjusted EPS of $4.34, which implies EPS of $6.08 “plus” – above the consensus estimate of $5.78 and our prior forecast of $5.62.
Commenting, the firm said, “were surprised that CP provided guidance and view it as a signal of management’s confidence in the progress of the turnaround; however, we note that the company’s guidance was roughly consistent with consensus expectations excluding the revision to 2013 pension expense guidance ($6.08 – $0.39 = $5.69).”
For an analyst ratings summary and ratings history on Canadian Pacific Railway Limited click here. For more ratings news on Canadian Pacific Railway Limited click here.
Shares of Canadian Pacific Railway Limited closed at $115.92 yesterday, with a 52 week range of $68.69-$118.07.
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