Argus analyst John Eadesays Canadian Pacific Kansas City shares have underperformed the market over the past quarter, losing 3% while the S&P 500 gained 5%. With the close of the Kansas City Southern acquisition, the firm expects management to intensify its focus on earnings and dividend growth. Argus also likes like Canadian Pacific on a macro basis, saying the rail industry has been on more of a secular growth trend than other transport options. It recommends using the recent pullback as a buying opportunity and keeps a Buy rating on the shares but trimmed the firm’s price target to $87 from $90 to reflect the impact of higher interest rates on equity valuations.
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