Canadian Pacific Kansas City (NYSE:CP) Given New $127.00 Price Target at Royal Bank Of Canada

Key Points

• Royal Bank of Canada trimmed its price target to $127 (from $128) but kept an "outperform" rating, implying roughly a 46.9% upside from the prior close.
• Analyst consensus on CP is a "Moderate Buy" with an average price target of $94.90 (1 Strong Buy, 9 Buy, 4 Hold), while the stock trades around $86.45 with a market cap near $77.1B.
• Q1 results were mixed: reported EPS of $0.95 missed estimates (~$0.99) with flat revenue, but the board raised the quarterly dividend by 17.5% and management cited operational improvements, even as some outside data point to weaker volumes and downward estimate risk.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP had its price target dropped by stock analysts at Royal Bank Of Canada from $128.00 to $127.00 in a research note issued to investors on Thursday,Benzinga reports. The brokerage presently has an "outperform" rating on the transportation company's stock. Royal Bank Of Canada's target price indicates a potential upside of 46.90% from the stock's previous close.

A number of other equities analysts also recently weighed in on the stock. Sanford C. Bernstein boosted their target price on shares of 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. Scotiabank cut shares of Canadian Pacific Kansas City from a "strong-buy" rating to a "hold" rating in a research note on Thursday, April 9th. Citigroup raised their price target on shares of Canadian Pacific Kansas City from $86.00 to $93.00 and gave the company a "buy" rating in a report on Tuesday, April 7th. ATB Cormark Capital Markets cut shares of Canadian Pacific Kansas City from a "strong-buy" rating to a "moderate buy" rating in a research report on Friday, April 17th. Finally, Wall Street Zen cut Canadian Pacific Kansas City from a "hold" rating to a "sell" rating in a report on Tuesday, March 3rd. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, Canadian Pacific Kansas City has a consensus rating of "Moderate Buy" and an average price target of $94.90.

Canadian Pacific Kansas City Price Performance

Shares of CP stock traded up $2.17 during trading hours on Thursday, hitting $86.45. 2,244,470 shares of the company's stock were exchanged, compared to its average volume of 2,772,097. Canadian Pacific Kansas City has a 52 week low of $68.42 and a 52 week high of $89.42. The stock has a market cap of $77.14 billion, a price-to-earnings ratio of 26.77, a price-to-earnings-growth ratio of 1.88 and a beta of 1.07. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.49 and a quick ratio of 0.41. The stock's 50-day moving average is $82.43 and its 200-day moving average is $77.06.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP last released its quarterly earnings results 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). Canadian Pacific Kansas City had a net margin of 27.49% and a return on equity of 8.91%. The business had revenue of $2.85 billion during the quarter, compared to the consensus estimate of $2.85 billion. During the same period in the prior year, the firm earned $1.29 earnings per share. The business's quarterly revenue was up 1.3% compared to the same quarter last year. As a group, research analysts forecast that Canadian Pacific Kansas City will post 3.74 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of CP. Prosperity Bancshares Inc bought a new stake in Canadian Pacific Kansas City in the fourth quarter valued at approximately $26,000. Gilpin Wealth Management LLC acquired a new position in shares of Canadian Pacific Kansas City in the 4th quarter valued at $29,000. Caldwell Trust Co bought a new stake in shares of Canadian Pacific Kansas City in the 3rd quarter valued at $30,000. McMillan Office Inc. bought a new stake in shares of Canadian Pacific Kansas City in the 4th quarter valued at $31,000. Finally, Acadian Asset Management LLC acquired a new stake in Canadian Pacific Kansas City during the 1st quarter worth $35,000. Institutional investors own 72.20% of the company's stock.

Key Stories Impacting Canadian Pacific Kansas City

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

• Positive Sentiment: Board raises the quarterly dividend 17.5% to $0.268/share, signaling stronger cash return to shareholders and supporting income-oriented demand. CPKC increases dividend by 17.5 percent
• Positive Sentiment: Company press release frames Q1 as "resilient performance" with reported revenues of $3.7B, diluted EPS $0.94 and core adjusted EPS $1.04; management highlights operational improvements under precision scheduled railroading. CPKC reports first quarter results, demonstrating resilient performance
• Neutral Sentiment: CPKC executives (CFO and COO) will present at the Bank of America Industrials, Transportation & Airlines Key Leaders Conference on May 13 with a live webcast — a chance for management to address investors and provide color on guidance and execution. CPKC executives to address the Bank of America Industrials, Transportation and Airlines Key Leaders Conference on May 13
• Neutral Sentiment: Annual meeting results: all 14 management nominees were elected with strong support, preserving board continuity (business governance signal, limited near-term impact on strategy). CPKC announces results of director elections
• Negative Sentiment: Independent coverage and some data points show weakness: Zacks and MarketBeat report Q1 EPS of $0.76 (missing consensus ~$0.78) and revenue below expectations with year-over-year declines, and analysts warn of falling estimates, weak freight volumes and rising costs — these items are weighing on forward outlook and could cap upside. Canadian Pacific Kansas City (CP) Lags Q1 Earnings and Revenue Estimates CP to Report Q1 Earnings: What's in Store for the Stock? MarketBeat Q1 coverage

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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