National Bank Financial Forecasts Strong Price Appreciation for Canadian Pacific Kansas City (TSE:CP) Stock

Key Points

• National Bank Financial raised its price target for Canadian Pacific Kansas City to C$142 from C$140 and maintained an “outperform” rating, implying 15.18% upside. The stock has a consensus “Moderate Buy” rating and average target of C$139.41.
• CP shares fell 1.9% to C$123.28, despite reporting quarterly revenue of C$4.22 billion and earnings of C$1.28 per share. The company posted a 25.04% net margin and analysts expect full-year EPS of C$4.34.
• Insiders sold 78,015 shares worth about C$10.5 million during the latest quarter, while insider ownership remains very low at 0.03% of the company.

Canadian Pacific Kansas City (TSE:CP - Get Free Report) NYSE: CP had its target price increased by investment analysts at National Bank Financial from C$140.00 to C$142.00 in a research note issued on Thursday, BayStreet reports. The brokerage presently has an "outperform" rating on the stock. National Bank Financial's price target suggests a potential upside of 15.18% from the stock's previous close.

A number of other research firms have also recently issued reports on CP. BMO Capital Markets upped their price target on shares of Canadian Pacific Kansas City from C$142.00 to C$145.00 and gave the company an "outperform" rating in a report on Thursday, July 30th. Royal Bank Of Canada increased their price objective on 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. Stephens raised Canadian Pacific Kansas City to a "hold" rating in a report on Wednesday, July 8th. TD lifted their target price on 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, ATB Cormark Capital Markets increased their price objective on shares of Canadian Pacific Kansas City from C$137.00 to C$143.00 and gave the company an "outperform" rating in a report on Thursday, July 30th. One research 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 price target of C$139.41.

Canadian Pacific Kansas City Stock Down 1.9%

TSE CP traded down C$2.42 on Thursday, reaching C$123.28. The stock had a trading volume of 1,015,036 shares, compared to its average volume of 1,374,610. The business has a 50 day moving average price of C$124.69 and a 200 day moving average price of C$119.06. Canadian Pacific Kansas City has a 1 year low of C$96.50 and a 1 year high of C$133.38. The company has a market capitalization of C$108.37 billion, a price-to-earnings 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.

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

Insider Activity at Canadian Pacific Kansas City

In other Canadian Pacific Kansas City news, insider Mark Ashley Redd sold 52,000 shares of Canadian Pacific Kansas City stock in a transaction dated Monday, August 24th. The stock was sold at an average price of C$134.50, for a total transaction of C$6,994,000.00. Following the transaction, the insider directly owned 2,199 shares in the company, valued at approximately C$295,765.50. The trade was a 95.94% decrease in their ownership of the stock. Also, insider Pamela Lynne Arpin sold 1,385 shares of the business's stock in a transaction dated Friday, August 21st. The shares were sold at an average price of C$132.92, for a total value of C$184,094.20. Following the completion of the transaction, the insider directly owned 4,578 shares of the company's stock, valued at approximately C$608,507.76. The trade was a 23.23% 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 quarter. Corporate 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

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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