Canadian Pacific Kansas City (TSE:CP) Stock Price Target Lowered at Desjardins

Key Points

• Desjardins lowered its price target for Canadian Pacific Kansas City from C$143 to C$141 while maintaining a “buy” rating, implying 14.37% upside. Analysts overall give the stock a “Moderate Buy” consensus rating with a C$139.41 average target.
• CP shares fell 1.9% to C$123.28 during Thursday trading, despite reporting C$4.22 billion in quarterly revenue and C$1.28 in earnings per share.
• Insiders sold approximately C$10.5 million of stock over the past 90 days, while higher fuel costs pressured earnings and limited the benefit of stronger freight volumes.

Canadian Pacific Kansas City (TSE:CP - Get Free Report) NYSE: CP had its target price dropped by Desjardins from C$143.00 to C$141.00 in a research note issued on Thursday, BayStreet reports. The firm presently has a "buy" rating on the stock. Desjardins's price objective suggests a potential upside of 14.37% from the company's current price.

Other research analysts have also issued reports about the company. JPMorgan Chase & Co. lifted their target price on Canadian Pacific Kansas City from C$135.00 to C$153.00 in a report on Thursday, July 30th. Scotia increased their price target on Canadian Pacific Kansas City from C$143.00 to C$144.00 and gave the company an "outperform" rating in a research report on Thursday. ATB Cormack lifted their price objective on Canadian Pacific Kansas City from C$143.00 to C$146.00 and gave the company an "outperform" rating in a research note on Thursday, October 15th. Royal Bank Of Canada upped their target price on shares of Canadian Pacific Kansas City from C$145.00 to C$146.00 and gave the stock an "outperform" rating in a research note on Thursday, September 24th. Finally, ATB Cormark Capital Markets decreased their price target on shares of Canadian Pacific Kansas City from C$146.00 to C$144.00 and set an "outperform" rating for the company in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of C$139.41.

Canadian Pacific Kansas City Stock Down 1.9%

Canadian Pacific Kansas City stock traded down C$2.42 during mid-day trading on Thursday, reaching C$123.28. 1,015,036 shares of the company's stock were exchanged, compared to its average volume of 1,374,610. The company has a quick ratio of 0.42, a current ratio of 0.59 and a debt-to-equity ratio of 53.93. Canadian Pacific Kansas City has a twelve month low of C$96.50 and a twelve month high of C$133.38. The company has a market cap of C$108.37 billion, a P/E ratio of 28.67, a P/E/G ratio of 2.32 and a beta of 1.33. The company has a fifty day moving average of C$124.69 and a 200-day moving average of C$119.06.

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

Insider Activity at Canadian Pacific Kansas City

In other Canadian Pacific Kansas City news, insider Laird Joseph Pitz sold 24,630 shares of the company's stock in a transaction that occurred on 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 Mark Ashley Redd sold 52,000 shares of the stock in a transaction on Monday, August 24th. The stock was sold at an average price of C$134.50, for a total value of C$6,994,000.00. Following the sale, the insider directly owned 2,199 shares of the company's stock, valued at approximately C$295,765.50. This represents a 95.94% decrease in their ownership of the stock. Insiders sold a total of 78,015 shares of company stock worth $10,505,115 in the last 90 days. 0.03% of the stock is owned by insiders.

Key Stories Impacting Canadian Pacific Kansas City

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

About Canadian Pacific Kansas City

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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