Why Canadian Pacific Railway Limited (USA)(NYSE:CP) may reach to $209 ?

Canadian Pacific Railway Limited (USA) 189.96 +1.48 (0.79%)

Range	187.23 - 190.27	Div/yield	0.28/0.59
52 week	146.72 - 220.20	EPS	6.93
Open	188.15	Shares	165.48M
Vol / Avg.	0.00/678,210.00	Beta	1.25
Mkt cap	31.31B	Inst. own	69%
P/E	27.42

Canadian Pacific Railway Limited (CPRL) is a provider of rail and intermodal freight transportation services over a 14,400-mile network serving the principal business centers of Canada, from Montreal to Vancouver, British Columbia and the United States Midwest and Northeast regions. Its network is consisted of four primary corridors: Western, Eastern, Central and the Northeast the United States. The Western Corridor links Vancouver with Thunder Bay, Ontario, which is the western Canadian terminus of its Eastern corridor. The Central Corridor connects with the Western Corridor at Moose Jaw. The Eastern Corridor extends from Thunder Bay through to its eastern terminus at Montreal and from Toronto to Chicago through Windsor/Detroit. The Northeast United States Corridor provides an important link between the major population centers of eastern Canada, the United States Midwest and the United States Northeast

•   Canadian Pacific Railway Limited one of the largest rail network operators in North America, has watched its stock rise over 2% in 2015, and it could rally much higher following the release of its first-quarter earnings results on April 21.
•   Canadian Pacific Railway is a strong business that has proven its ability to improve its operational efficiency and report strong financial returns.
•  Canadian Pacific Railway is in a strong position to achieve its revenue and EPS growth targets. Canadian Pacific enjoys high barriers that make it an attractive long-term investment.
•  Canadian Pacific Railway aims to grow its revenue from around $6.5 billion to around $10 billion by 2018.
• Canadian Pacific Railway has transformed its operations in the last two years which has yielded a healthy financial performance. Canadian Pacific Railway has continued this transformation and as a result its revenue is expected to increase at a healthy growth rate in the coming quarters.
• Canadian Pacific Railway is investing in growth opportunities and infrastructure that have the potential to bring healthy growth to the revenues.
• The consensus revenue growth estimates for the next two quarters are 9.90% and 12.90% respectively. The consensus revenue growth estimates for the current year is 8.40% and 10.40% for next year.
• In the last three years, Canadian Pacific Railway has managed to increase its operating margin from less than 20% to over 27%.
•  The analyst consensus estimates for EPS growth for the next two quarters are 17% and 50% respectively.

Conclusion

Canadian Pacific Railway Limited is a dynamic and efficient operator in the railway industry. Canadian Pacific Railway has demonstrated its ability to report healthy financial performances and produce healthy returns for its shareholders. Canadian Pacific Railway is in a strong position to achieve its announced revenue and EPS growth targets. Canadian Pacific Railway enjoys high barriers that make it a strong long-term investment. The consensus target price reveals attractive upside based on its current price and the relative valuation shows that Canadian Pacific Railway's current price is appropriate enough for one to take a position in its stock.

Period Ending	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012
Net Income	1,274,000	824,000	486,000
Operating Activities, Cash Flows Provided By or Used In
Depreciation	477,000	532,000	541,000
Adjustments To Net Income	177,000	530,000	396,000
Changes In Accounts Receivables	-	-	-
Changes In Liabilities	-	-	-
Changes In Inventories	-	-	-
Changes In Other Operating Activities	(95,000)	(50,000)	(89,000)
Total Cash Flow From Operating Activities	1,833,000	1,835,000	1,334,000
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures	(1,251,000)	(1,163,000)	(1,153,000)
Investments	-	-	-
Other Cash flows from Investing Activities	604,000	(340,000)	138,000
Total Cash Flows From Investing Activities	(648,000)	(1,503,000)	(1,015,000)
Financing Activities, Cash Flows Provided By or Used In
Dividends Paid	(211,000)	(230,000)	(224,000)
Sale Purchase of Stock	(1,716,000)	78,000	199,000
Net Borrowings	(158,000)	(53,000)	(6,000)
Other Cash Flows from Financing Activities	678,000	(3,000)	1,000
Total Cash Flows From Financing Activities	(1,407,000)	(207,000)	(30,000)
Effect Of Exchange Rate Changes	6,000	9,000	(1,000)
Change In Cash and Cash Equivalents	(216,000)	135,000	287,000

•  Vtrade Capital Services is expecting  Canadian Pacific Railway Limited (USA) to reach USD 209 by end of the 2nd quarter.