Canadian Pacific added to US Focus List at Citigroup Citigroup added shares of Canadian Pacific Railway to its US Focus List on expectations volumes will accelerate in the coming weeks. Citi also notes that Pershing Square has maxed out its selling ability for the next 90 days. The firm raised its price target for shares to $190 from $170 and keeps a Buy rating on the stock.
Rail estimates need to come down further, says Citi Citi analyst Christian Wetherbee noted that consensus estimates in the rail sector for Q2 EPS have fallen an average of 8% since the firm moved below consensus last month, but believes the numbers have to come down further. Wetherbee cut his Q2 estimates by another 5%, lowered Q3 by 4% and cut his forecast for 2016 EPS by 3% and lowered price targets on stocks in the space by 6% on average. Wetherbee added that he believes Union Pacific (UNP) and Norfolk Southern (NSC) have the highest the pre-announcement risk in the group and lowered his targets on those stocks, as well as for Canadian National (CNI), Canadian Pacific (CP), CSX (CSC) and Kansas City Southern (KSU).