April 24, 2019 / 12:06 PM / 6 months ago

BUZZ-Street View: Canadian Pacific Railway's strong guidance likely to offset Q1 miss

** Canadian Pacific Railway Ltd missed analysts’ estimates for profit on Tuesday as it spent heavily to combat harsh winter that impacted operations

** Overall Q1 operating expenses, including casualty costs of $69 mln, rose 9% to C$1.22 bln ($907.00 mln)

“THE BEST APRIL ON RECORD”

** Morgan Stanley (“overweight,” PT: C$277) says outlook looks strongs despite tough Q1, which was worse than feared largely due to outsized impact of weather

** MS says market will be inclined to look beyond Q1 given the robust outlook for the rest of the year

** RBC (“outperform,” PT: C$337) says management’s 2019 guidance entirely offsets the tough Q1

** Powerful operating model on display as mgmt guides to rapid operating recovery - RBC

** Credit Suisse (“outperform,” PT: $245) says even though full year estimates were downwardly revised ~3% over a year ago, volume snapback and quick service recovery in the recent weeks come as a bit of a positive surprise

** Morning Star expect CP will lead the railroad firms in profit margins, matched only by CN; says co not shaken by a harsh winter nor one quarter of an unflattering 69.3% operating ratio

** CIBC (“outperformer,” PT:$326) sees co benefiting from strong growth pipeline, is well positioned to handle the volumes that were pushed out from Q1

** Stifel (“buy,” PT: $242) says next few quarters looks promising

$1 = 1.3451 Canadian dollars

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