why Canadian Pacific Railway Limited [CP] is a Good Choice for Investors After New Price Target of $82.30



Canadian Pacific Railway Limited [NYSE: CP] price surged by 1.88 percent to reach at $1.39. The company report on November 23, 2021 that Surface Transportation Board Accepts CP-KCS Merger Application as Complete, Sets Procedural Schedule.

Canadian Pacific Railway Limited (TSX: CP, NYSE: CP) (“CP”) and Kansas City Southern (NYSE: KSU) (“KCS”) announced that the Surface Transportation Board (“STB”) has accepted the joint CP-KCS merger application as complete.

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“We are pleased that the Board has accepted our comprehensive joint application and declared it complete,” said Keith Creel, CP President and Chief Executive Officer. “We look forward to moving forward with a robust regulatory review of this historic combination that will add capacity to the U.S. rail network, create new competitive transportation options, support North American economic growth, and deliver other important benefits to customers, employees, and the environment.”.

A sum of 5456163 shares traded at recent session while its average daily volume was at 5.05M shares. Canadian Pacific Railway Limited shares reached a high of $75.32 and dropped to a low of $73.76 until finishing in the latest session at $75.20.

The one-year CP stock forecast points to a potential upside of 8.63. The average equity rating for CP stock is currently 2.40, trading closer to a bullish pattern in the stock market.

Guru’s Opinion on Canadian Pacific Railway Limited [CP]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CP shares is $82.30 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CP stock is a recommendation set at 2.40. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Atlantic Equities have made an estimate for Canadian Pacific Railway Limited shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on November 16, 2021. The new note on the price target was released on August 12, 2021, representing the official price target for Canadian Pacific Railway Limited stock. Previously, the target price had yet another raise to $80, while Stifel analysts kept a Hold rating on CP stock.

The Average True Range (ATR) for Canadian Pacific Railway Limited is set at 1.35, with the Price to Sales ratio for CP stock in the period of the last 12 months amounting to 8.01. The Price to Book ratio for the last quarter was 5.30, with the Price to Cash per share for the same quarter was set at 0.25. Price to Free Cash Flow for CP in the course of the last twelve months was 30.11 with Quick ratio for the last quarter at 0.30.

CP Stock Performance Analysis:

Canadian Pacific Railway Limited [CP] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -2.60. With this latest performance, CP shares gained by 0.11% in over the last four-week period, additionally sinking by -7.72% over the last 6 months – not to mention a rise of 14.31% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for CP stock in for the last two-week period is set at 50.52, with the RSI for the last a single of trading hit 46.69, and the three-weeks RSI is set at 52.73 for Canadian Pacific Railway Limited [CP]. The present Moving Average for the last 50 days of trading for this stock 72.12, while it was recorded at 74.82 for the last single week of trading, and 74.06 for the last 200 days.

Insight into Canadian Pacific Railway Limited Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Canadian Pacific Railway Limited [CP] shares currently have an operating margin of +42.81 and a Gross Margin at +44.66. Canadian Pacific Railway Limited’s Net Margin is presently recorded at +31.70.

Return on Total Capital for CP is now 19.66, given the latest momentum, and Return on Invested Capital for the company is 15.44. Return on Equity for this stock inclined to 33.97, with Return on Assets sitting at 10.54. When it comes to the capital structure of this company, Canadian Pacific Railway Limited [CP] has a Total Debt to Total Equity ratio set at 137.75. Additionally, CP Total Debt to Total Capital is recorded at 57.94, with Total Debt to Total Assets ending up at 42.33. Long-Term Debt to Equity for the company is recorded at 120.69, with the Long-Term Debt to Total Capital now at 50.76.

Reflecting on the efficiency of the workforce at the company, Canadian Pacific Railway Limited [CP] managed to generate an average of $205,551 per employee. Receivables Turnover for the company is 9.46 with a Total Asset Turnover recorded at a value of 0.33.Canadian Pacific Railway Limited’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.30 and a Current Ratio set at 0.40.

CP Stock EPS

With the latest financial reports released by the company, Canadian Pacific Railway Limited posted 0.65/share EPS, while the average EPS was predicted by analysts to be reported at 0.67/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -3.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for CP. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Canadian Pacific Railway Limited go to 10.35%.

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Canadian Pacific Railway Limited [CP] Insider Position Details

There are presently around $39,564 million, or 69.50% of CP stock, in the hands of institutional investors. The top three institutional holders of CP stocks are: TCI FUND MANAGEMENT LTD with ownership of 55,860,385, which is approximately 0% of the company’s market cap and around 0.02% of the total institutional ownership; ROYAL BANK OF CANADA, holding 41,026,442 shares of the stock with an approximate value of $3.09 billion in CP stocks shares; and WCM INVESTMENT MANAGEMENT, LLC, currently with $2.41 billion in CP stock with ownership of nearly 0.436% of the company’s market capitalization.

Positions in Canadian Pacific Railway Limited stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 293 institutional holders increased their position in Canadian Pacific Railway Limited [NYSE:CP] by around 67,382,794 shares. Additionally, 206 investors decreased positions by around 14,685,851 shares, while 119 investors held positions by with 444,044,018 shares. The mentioned changes placed institutional holdings at 526,112,663 shares, according to the latest SEC report filing. CP stock had 70 new institutional investments in for a total of 18,303,215 shares, while 62 institutional investors sold positions of 2,512,243 shares during the same period.



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