Evercore ISI removed Canadian Pacific (CP) from the firm’s "Tactical Underperform" list after the Surface Transportation Board, or STB, approved the merger of Canadian Pacific and Kansas City Southern (KSU). Though the STB noted "several conditions", including a 7-year oversight period with elevated data disclosures, "truly concessionary requests from other Class I rails were uniformly denied" so the firm does not foresee any impediments to the initial synergy targets described by management, the analyst tells investors. Evercore has an Outperform rating and $84 price target on Canadian Pacific shares.
Published first on TheFly
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