Scotiabank analyst Konark Gupta downgraded Canadian Pacific Kansas City to Sector Perform from Outperform with a price target of C$126, up from C$120. Freight markets are portraying a “mixed yet promising picture,” with rail, air cargo and less-than-truckload volumes sustaining year-over-year growth while LTL tonnage remains weak on declining weight per shipment, the analyst tells investors in a research note. The firm Canadian Pacific Kansas City on “overheated valuation concerns.” It sees positive fundamentals but “demanding valuations” for the rails.
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