Desjardins Believes Canadian Pacific Railway (TSX: CP) Still Has Room to Grow

By Ryan Adsit

Canadian Pacific Railway (TSX: CP), the Services sector company was revisited yesterday, and remains undervalued for at least one analyst on the street. The company received a Buy rating from Desjardins’ analyst Benoit Poirier, with a C$232 price target.

According to TipRanks.com, Poirier is a 4-star analyst with an average return of 6.9% and a 64.4% success rate. Poirier covers the Services sector, focusing on stocks such as Canadian Railway, Canadian Pacific, and Stantec Inc.

Currently, the analyst consensus on Canadian Pacific Railway is Strong Buy and the average price target is C$222.60, representing a 4.8% upside.

In a report issued on May 18, Scotiabank also maintained a Buy rating on the stock with a C$220 price target.

The company has a one year high of C$218.78 and a one year low of C$156.01. Currently, Canadian Pacific Railway has an average volume of 361.9K.

Canadian Pacific Railway Ltd. engages in the operation of transcontinental railway. It provides logistics and supply chain expertise. The company offers rail and intermodal transportation services to business centre of Canada from Montreal, Quebec, to Vancouver, British Columbia, and the U.S. Northeast and Midwest regions. It transports bulk commodities, merchandise freight and intermodal traffic. The company was founded in 1881 and is headquartered in Calgary, Canada.

The company’s shares closed last Wednesday at $212.45, close to its 52-week high of $218.78.