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Raymond James upgrades Canadian Pacific to Outperform on momentum

Raymond James analyst Steve Hansen upgraded Canadian Pacific Kansas City to Outperform from Market Perform with an unchanged price target of C$115. The company reported “solid” Q3 results and its commentary suggested the worst of the freight recession is behind it, the analyst tells investors in a research note. The firm adds that Canadian Pacific’s revenue and cost synergies are tracking ahead of plan, its key operating metrics are gathering momentum and management remains confident in the 2024 outlook. The stock’s sharp pullback over the past month has introduced a more attractive, risk-adjusted entry-point for long-term investors, contends Raymond James.

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