Canadian Pacific price target raised to $89.06 from $88.50 at Bernstein

Bernstein analyst David Vernon raised the firm’s price target on Canadian Pacific Kansas City to $89.06 from $88.50 and keeps a Market Perform rating on the shares. Rail stocks “have taken a bit of a beating” in Q2, as the market has grappled with mixed signals and pushed out rate cut expectations, the analyst tells investors in a research note. The firm says a slower macro recovery paired with a trucking market that’s proven sluggish in its tightening “have created a recipe for investor reluctance to buy into the rails.” Bernstein believes this is usually a good time to buy the railroads that are positioned to be fundamentally strong businesses when the market turns.