CP’s 2Q15 carloads quarter-to-date have underperformed our estimates and we have therefore cut our 2Q15e EPS by 19% to $2.42/share. In addition, a coal production curtailment by CP’s largest single customer should cost it $0.10/share in earnings in 3Q15. Longer-term, we have cut our EPS by 12% in both 2016 and 2017 and have reduced our 12-month target price to $235/share. We maintain our Outperform ranking on CP.
17 Jun 2015
2Q15 Carloads Down 3.4% y/y (Prev. Est. +5.6%); Decreased 2Q15 Earnings Outlook (-18% to $2.44); 12MTP now $235/share (was $270/share)
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2Q15 Carloads Down 3.4% y/y (Prev. Est. +5.6%); Decreased 2Q15 Earnings Outlook (-18% to $2.44); 12MTP now $235/share (was $270/share)
Canadian Pacific Kansas City Limited (CP:TSE) | 0 0 1.0% | Mkt Cap: 33,360m
- Published:
17 Jun 2015 -
Author:
Steven I. Paget -
Pages:
7
CP’s 2Q15 carloads quarter-to-date have underperformed our estimates and we have therefore cut our 2Q15e EPS by 19% to $2.42/share. In addition, a coal production curtailment by CP’s largest single customer should cost it $0.10/share in earnings in 3Q15. Longer-term, we have cut our EPS by 12% in both 2016 and 2017 and have reduced our 12-month target price to $235/share. We maintain our Outperform ranking on CP.