Canadian Pacific Kansas City (TSE:CP) Given New C$144.00 Price Target at Scotia

Key Points

• Scotia raised Canadian Pacific Kansas City’s price target to C$144 from C$143 and maintained an “outperform” rating, implying 16.81% upside from the previous close.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and average target of C$139.41; targets from other firms range as high as C$145.
• CP shares fell 1.9% to C$123.28, while the company reported C$1.28 in quarterly EPS and C$4.22 billion in revenue. Recent insider activity was negative, with insiders selling 78,015 shares worth approximately C$10.5 million over 90 days.

Canadian Pacific Kansas City (TSE:CP - Get Free Report) NYSE: CP had its target price upped by Scotia from C$143.00 to C$144.00 in a research report issued to clients and investors on Thursday, BayStreet reports. The firm currently has an "outperform" rating on the stock. Scotia's price objective points to a potential upside of 16.81% from the company's previous close.

A number of other equities analysts have also issued reports on CP. Stephens raised Canadian Pacific Kansas City to a "hold" rating in a report on Wednesday, July 8th. Desjardins upped their price objective on shares of Canadian Pacific Kansas City from C$141.00 to C$143.00 and gave the stock a "buy" rating in a report on Thursday, July 30th. ATB Cormark Capital Markets increased their target price on shares of Canadian Pacific Kansas City from C$137.00 to C$143.00 and gave the company an "outperform" rating in a research report on Thursday, July 30th. TD raised their target price on shares of Canadian Pacific Kansas City from C$128.00 to C$134.00 and gave the company a "hold" rating in a research note on Thursday, July 30th. Finally, BMO Capital Markets boosted their price target on shares of Canadian Pacific Kansas City from C$142.00 to C$145.00 and gave the stock an "outperform" rating in a research report on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of C$139.41.

Canadian Pacific Kansas City Trading Down 1.9%

CP stock traded down C$2.42 during trading on Thursday, reaching C$123.28. 1,015,036 shares of the stock traded hands, compared to its average volume of 1,374,610. The firm has a market capitalization of C$108.37 billion, a PE ratio of 28.67, a P/E/G ratio of 2.32 and a beta of 1.33. The company has a debt-to-equity ratio of 53.93, a current ratio of 0.59 and a quick ratio of 0.42. The business's 50 day moving average price is C$124.69 and its 200-day moving average price is C$119.06. Canadian Pacific Kansas City has a 52-week low of C$96.50 and a 52-week high of C$133.38.

Canadian Pacific Kansas City (TSE:CP - Get Free Report) NYSE: CP last released its quarterly earnings data on Wednesday, October 28th. The company reported C$1.28 earnings per share (EPS) for the quarter. The business had revenue of C$4.22 billion during the quarter. Canadian Pacific Kansas City had a return on equity of 8.35% and a net margin of 25.04%. As a group, sell-side analysts forecast that Canadian Pacific Kansas City will post 4.34 earnings per share for the current year.

Insider Buying and Selling

In other Canadian Pacific Kansas City news, insider Laird Joseph Pitz sold 24,630 shares of the firm's stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of C$135.08, for a total transaction of C$3,327,020.40. Also, insider Pamela Lynne Arpin sold 1,385 shares of the firm's stock in a transaction dated Friday, August 21st. The stock was sold at an average price of C$132.92, for a total value of C$184,094.20. Following the sale, the insider owned 4,578 shares of the company's stock, valued at C$608,507.76. The trade was a 23.23% decrease in their ownership of the stock. In the last ninety days, insiders sold 78,015 shares of company stock valued at $10,505,115. Corporate insiders own 0.03% of the company's stock.

Canadian Pacific Kansas City News Roundup

Here are the key news stories impacting Canadian Pacific Kansas City this week:

• Positive Sentiment: Analysts raised their valuation outlook. CIBC lifted its price target to C$150, while Stifel Nicolaus reiterated a “buy” rating and set the same target. These targets imply meaningful upside from recent trading levels and indicate confidence in CP’s long-term growth prospects. CIBC price target article
• Positive Sentiment: CP renewed its rail service agreement with Elk Valley Resources. The coal deal should provide additional volume and revenue visibility, while supporting the company’s diversified cross-border freight strategy. Elk Valley Resources agreement
• Positive Sentiment: Third-quarter revenue increased on higher freight volumes. CP reported C$4.22 billion in quarterly revenue and earnings of C$1.28 per share, showing continued demand for its rail services. CP third-quarter sales article
• Neutral Sentiment: Operating profitability was mixed. CP’s reported net margin was 25.04% and return on equity was 8.35%, but earnings were broadly flat as higher costs offset revenue gains. CP earnings and fuel costs article
• Negative Sentiment: Higher fuel expenses pressured quarterly earnings. The cost inflation limited the benefit of stronger volumes and revenue, raising concerns about near-term margin expansion. CP Q3 earnings and fuel costs

Canadian Pacific Kansas City Company Profile

With its global headquarters in Calgary, Alta., Canada, CPKC is the first and only single-line transnational railway linking Canada, the United States and México, with unrivaled access to major ports from Vancouver to Atlantic Canada to the Gulf Coast to Lázaro Cárdenas, México. Stretching approximately 20,000 route miles and employing 20,000 railroaders, CPKC provides North American customers unparalleled rail service and network reach to key markets across the continent. CPKC is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise.

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