Canadian Pacific Kansas City (NYSE:CP) Cut to Hold at Scotiabank

Key Points

• Scotiabank downgraded Canadian Pacific Kansas City from "strong‑buy" to "hold," and while other firms have adjusted ratings and targets, the consensus across analysts remains a Moderate Buy with a $92.45 average price target.
• The company missed Q4 EPS expectations ($0.95 reported vs. $0.99 expected) on $2.85B of revenue, and the stock trades around $81 with a market cap of $72.6B, a P/E of 25.2 and a 52‑week range of $68.42–$89.42.
• CPKC is the merged North American Class I freight railroad (Canadian Pacific + Kansas City Southern) operating a single‑line network across Canada, the U.S. and Mexico to streamline cross‑border freight flows.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP was downgraded by stock analysts at Scotiabank from a "strong-buy" rating to a "hold" rating in a note issued to investors on Thursday,Zacks.com reports.

CP has been the topic of a number of other reports. Wall Street Zen lowered Canadian Pacific Kansas City from a "hold" rating to a "sell" rating in a research note on Tuesday, March 3rd. National Bank Financial lowered Canadian Pacific Kansas City from a "strong-buy" rating to a "hold" rating in a research note on Thursday, January 8th. Barclays decreased their target price on Canadian Pacific Kansas City from $93.00 to $91.00 and set an "overweight" rating on the stock in a research note on Friday, March 27th. Citigroup upped their target price on Canadian Pacific Kansas City from $86.00 to $93.00 and gave the stock a "buy" rating in a research note on Tuesday. Finally, Sanford C. Bernstein upped their target price on Canadian Pacific Kansas City from $85.41 to $90.00 and gave the stock a "market perform" rating in a research note on Tuesday, March 31st. Eight analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to MarketBeat, Canadian Pacific Kansas City presently has a consensus rating of "Moderate Buy" and a consensus price target of $92.45.

Canadian Pacific Kansas City Stock Performance

Shares of CP opened at $81.32 on Thursday. The stock's 50-day simple moving average is $81.77 and its 200 day simple moving average is $76.28. The stock has a market capitalization of $72.56 billion, a price-to-earnings ratio of 25.18, a price-to-earnings-growth ratio of 1.74 and a beta of 1.07. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.41 and a current ratio of 0.49. Canadian Pacific Kansas City has a 52-week low of $68.42 and a 52-week high of $89.42.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP last issued its quarterly earnings data on Wednesday, January 28th. The transportation company reported $0.95 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.99 by ($0.04). The company had revenue of $2.85 billion for the quarter, compared to analysts' expectations of $2.85 billion. Canadian Pacific Kansas City had a return on equity of 8.91% and a net margin of 27.49%.The business's revenue for the quarter was up 1.3% on a year-over-year basis. During the same period last year, the company posted $1.29 EPS. Research analysts forecast that Canadian Pacific Kansas City will post 3.42 EPS for the current fiscal year.

Hedge Funds Weigh In On Canadian Pacific Kansas City

A number of institutional investors have recently added to or reduced their stakes in the business. Dilation Capital Management LP increased its position in shares of Canadian Pacific Kansas City by 4.4% during the 3rd quarter. Dilation Capital Management LP now owns 170,269 shares of the transportation company's stock valued at $12,683,000 after purchasing an additional 7,105 shares during the last quarter. Meixler Investment Management Ltd. bought a new position in shares of Canadian Pacific Kansas City during the 3rd quarter valued at about $1,644,000. AGF Management Ltd. increased its position in shares of Canadian Pacific Kansas City by 9.9% during the 3rd quarter. AGF Management Ltd. now owns 2,001,292 shares of the transportation company's stock valued at $149,215,000 after purchasing an additional 180,419 shares during the last quarter. Nicola Wealth Management LTD. increased its position in shares of Canadian Pacific Kansas City by 46.8% during the 3rd quarter. Nicola Wealth Management LTD. now owns 141,500 shares of the transportation company's stock valued at $10,539,000 after purchasing an additional 45,100 shares during the last quarter. Finally, Envestnet Asset Management Inc. increased its position in shares of Canadian Pacific Kansas City by 1.3% during the 3rd quarter. Envestnet Asset Management Inc. now owns 1,127,435 shares of the transportation company's stock valued at $83,985,000 after purchasing an additional 14,916 shares during the last quarter. 72.20% of the stock is currently owned by institutional investors.

Canadian Pacific Kansas City Company Profile

Canadian Pacific Kansas City (CPKC) is a North American Class I freight railroad formed through the combination of Canadian Pacific Railway and Kansas City Southern. The merged company operates an integrated rail network that spans Canada, the United States and Mexico, providing a single-line rail connection across all three countries. This transborder footprint is intended to streamline cross-border freight flows and provide shippers with direct rail access from Canadian and U.S. production centers to Mexican markets and ports.

CPKC's core business is freight transportation and related logistics services.

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