Citigroup Issues Positive Forecast for Canadian Pacific Kansas City (NYSE:CP) Stock Price

Key Points

• Citigroup raised its price target for Canadian Pacific Kansas City from $93 to $97 and maintained a "buy" rating, implying roughly an 11.8% upside from the prior close.
• Analyst coverage is mixed but the consensus is a Moderate Buy with an average price target of $95.30 (one Strong Buy, nine Buy, four Hold).
• Q1 results slightly missed EPS expectations (by $0.04) and noted softer volumes, yet the board raised the quarterly dividend by 17.5% and several large institutional investors increased their stakes.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP had its price target raised by Citigroup from $93.00 to $97.00 in a note issued to investors on Thursday,BayStreet.CA reports. The firm currently has a "buy" rating on the transportation company's stock. Citigroup's target price points to a potential upside of 11.81% from the stock's previous close.

Other research analysts also recently issued reports about the company. Wall Street Zen downgraded Canadian Pacific Kansas City from a "hold" rating to a "sell" rating in a research note on Tuesday, March 3rd. Barclays set a $99.00 target price on Canadian Pacific Kansas City and gave the stock an "overweight" rating in a research note on Thursday. Royal Bank Of Canada reduced their target price on Canadian Pacific Kansas City from $128.00 to $127.00 and set an "outperform" rating for the company in a research note on Thursday. Scotiabank downgraded Canadian Pacific Kansas City from a "strong-buy" rating to a "hold" rating in a research note on Thursday, April 9th. Finally, ATB Cormark Capital Markets downgraded Canadian Pacific Kansas City from a "strong-buy" rating to a "moderate buy" rating in a research note on Friday, April 17th. One investment 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's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $95.30.

Canadian Pacific Kansas City Stock Performance

Canadian Pacific Kansas City stock traded up $2.48 during mid-day trading on Thursday, hitting $86.76. The company had a trading volume of 3,355,055 shares, compared to its average volume of 2,785,970. The company has a current ratio of 0.49, a quick ratio of 0.41 and a debt-to-equity ratio of 0.43. Canadian Pacific Kansas City has a 12-month low of $68.42 and a 12-month high of $89.42. The company's fifty day moving average is $82.43 and its 200-day moving average is $77.06. The company has a market capitalization of $77.41 billion, a price-to-earnings ratio of 26.84, a P/E/G ratio of 1.88 and a beta of 1.07.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP last announced its earnings results on Wednesday, January 28th. The transportation company reported $0.95 earnings per share for the quarter, missing the consensus estimate of $0.99 by ($0.04). The business had revenue of $2.85 billion for the quarter, compared to analyst estimates of $2.85 billion. Canadian Pacific Kansas City had a return on equity of 8.91% and a net margin of 27.49%.The company's quarterly revenue was up 1.3% compared to the same quarter last year. During the same period in the previous year, the company earned $1.29 earnings per share. Equities research analysts predict that Canadian Pacific Kansas City will post 3.74 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in CP. Norges Bank acquired a new position in Canadian Pacific Kansas City in the 4th quarter valued at $978,558,000. Janus Henderson Group PLC raised its stake in Canadian Pacific Kansas City by 586.1% in the 4th quarter. Janus Henderson Group PLC now owns 6,147,835 shares of the transportation company's stock valued at $452,781,000 after purchasing an additional 5,251,755 shares during the last quarter. Invesco Ltd. raised its stake in Canadian Pacific Kansas City by 18.3% in the 3rd quarter. Invesco Ltd. now owns 23,128,485 shares of the transportation company's stock valued at $1,722,841,000 after purchasing an additional 3,585,030 shares during the last quarter. FIL Ltd raised its stake in Canadian Pacific Kansas City by 20.2% in the 4th quarter. FIL Ltd now owns 16,666,777 shares of the transportation company's stock valued at $1,227,045,000 after purchasing an additional 2,804,686 shares during the last quarter. Finally, Canoe Financial LP raised its stake in Canadian Pacific Kansas City by 45,389.7% in the 1st quarter. Canoe Financial LP now owns 2,032,478 shares of the transportation company's stock valued at $159,885,000 after purchasing an additional 2,028,010 shares during the last quarter. 72.20% of the stock is owned by institutional investors and hedge funds.

Canadian Pacific Kansas City News Summary

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

• Positive Sentiment: Board hikes the quarterly dividend by 17.5% to $0.268/share, raising the company’s cash return to shareholders and supporting income-oriented demand for the shares. This is an explicit shareholder-friendly move management highlighted. CPKC increases dividend by 17.5 percent
• Neutral Sentiment: CPKC announced that CFO Nadeem Velani and COO Mark Redd will present at the Bank of America Industrials, Transportation & Airlines conference on May 13; investors can use the live webcast for forward commentary and Q&A that may clarify outlook and cost/volume dynamics. CPKC executives to address the Bank of America conference
• Neutral Sentiment: RBC trimmed its price target slightly from $128 to $127 but kept an “Outperform” rating, implying substantial upside from current levels; this maintains institutional support even as the analyst modestly reduced expectations. RBC lowers CP price target to $127
• Neutral Sentiment: Company completed its annual meeting and elected all 14 management-nominated directors with strong shareholder support, reducing governance uncertainty. CPKC announces results of director elections
• Negative Sentiment: Q1 results were mixed: management touted “resilient performance” and operational improvements, but several outlets reported the quarter missed consensus on EPS and revenue (EPS misses of ~$0.02 vs. consensus, and softer revenue/volume trends noted), which raises near-term growth and margin concerns. Listen to the conference call/slide deck for management’s explanation of volumes and cost trajectory. CPKC reports first-quarter results
• Negative Sentiment: Analyst coverage and previews ahead of the print flagged falling estimates, weakness in freight volumes and rising costs — themes that analysts (Zacks and others) highlighted after results, which could pressure near-term multiple expansion if volumes don’t recover. CP to report Q1 earnings: what's in store

About Canadian Pacific Kansas City

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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