Citigroup Forecasts Strong Price Appreciation for Canadian Pacific Kansas City (TSE:CP) Stock

Key Points

• Citigroup raised its price target for Canadian Pacific Kansas City from C$102 to C$106 and maintained a “buy” rating, though the target implies 14.02% downside from the previous close.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and average target of C$139.41; other firms have set targets as high as C$150.
• CP shares fell 1.9% to C$123.28, while the company reported C$4.22 billion in quarterly revenue and C$1.28 earnings per share. Insiders have sold roughly C$10.5 million of stock over the past 90 days.

Canadian Pacific Kansas City (TSE:CP - Get Free Report) NYSE: CP had its price objective hoisted by Citigroup from C$102.00 to C$106.00 in a research report issued on Thursday, BayStreet reports. The brokerage currently has a "buy" rating on the stock. Citigroup's price objective would indicate a potential downside of 14.02% from the company's previous close.

CP has been the topic of a number of other reports. Scotiabank raised their target price on shares of Canadian Pacific Kansas City from C$122.00 to C$143.00 and gave the company a "strong-buy" rating in a research note on Thursday, July 16th. Citizens Jmp upgraded shares of Canadian Pacific Kansas City to a "hold" rating in a report on Wednesday, July 15th. Stephens raised Canadian Pacific Kansas City to a "hold" rating in a research report on Wednesday, July 8th. Stifel Nicolaus set a C$150.00 price objective on Canadian Pacific Kansas City and gave the stock a "buy" rating in a research note on Tuesday. Finally, ATB Cormark Capital Markets boosted their price objective on Canadian Pacific Kansas City from C$137.00 to C$143.00 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 issued a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of C$139.41.

Canadian Pacific Kansas City Stock Down 1.9%

TSE CP traded down C$2.42 during 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. Canadian Pacific Kansas City has a fifty-two week low of C$96.50 and a fifty-two week high of C$133.38. 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 current ratio of 0.59, a quick ratio of 0.42 and a debt-to-equity ratio of 53.93. The company's fifty day simple moving average is C$124.69 and its 200-day simple moving average is 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 earnings per share for the quarter. The business had revenue of C$4.22 billion for the quarter. Canadian Pacific Kansas City had a net margin of 25.04% and a return on equity of 8.35%. Sell-side analysts predict that Canadian Pacific Kansas City will post 4.34 EPS for the current year.

Insider Buying and Selling at Canadian Pacific Kansas City

In related news, insider Laird Joseph Pitz sold 24,630 shares of the firm's stock in a transaction on Thursday, August 20th. The shares were sold at an average price of C$135.08, for a total value of C$3,327,020.40. Also, insider Mark Ashley Redd sold 52,000 shares of the firm's stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of C$134.50, for a total value of C$6,994,000.00. Following the completion of the sale, the insider directly owned 2,199 shares of the company's stock, valued at approximately C$295,765.50. The trade was a 95.94% decrease in their ownership of the stock. Over the last ninety days, insiders sold 78,015 shares of company stock valued at $10,505,115. Company insiders own 0.03% of the company's stock.

Trending Headlines about 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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