Canadian Pacific Kansas City Limited (NYSE:CP) Stock Rated "Moderate Buy" by Wall Street Analysts

Key Points

• Analysts rate Canadian Pacific Kansas City “Moderate Buy”: Of 17 covering firms, 12 recommend buying, four recommend holding, and one gives a strong-buy rating. The average 12-month price target is $112.
• CP reported quarterly revenue of $2.96 billion, up 15.2% year over year, but earnings per share of $0.91 missed the $0.94 consensus and declined from $1.10 a year earlier.
• The company declared a quarterly dividend of C$0.27 per share, or approximately C$1.07 annually, representing a yield of about 1.2% and a payout ratio of 24.04%.

Shares of Canadian Pacific Kansas City Limited (NYSE:CP - Get Free Report) TSE: CP have been assigned a consensus rating of "Moderate Buy" from the seventeen research firms that are covering the firm, Marketbeat.com reports. Four equities research analysts have rated the stock with a hold recommendation, twelve have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1 year price objective among brokerages that have issued ratings on the stock in the last year is $112.00.

A number of equities research analysts have recently weighed in on the company. Scotiabank reissued an "outperform" rating on shares of Canadian Pacific Kansas City in a report on Thursday. Susquehanna decreased their price target on shares of Canadian Pacific Kansas City from $106.00 to $98.00 and set a "positive" rating on the stock in a research note on Friday, October 2nd. Royal Bank Of Canada reaffirmed an "outperform" rating on shares of Canadian Pacific Kansas City in a research report on Thursday, September 24th. Citizens Jmp assumed coverage on shares of Canadian Pacific Kansas City in a research note on Wednesday, July 15th. They issued a "market perform" rating for the company. Finally, Wells Fargo & Company boosted their price objective on shares of Canadian Pacific Kansas City from $90.00 to $100.00 and gave the company an "overweight" rating in a report on Wednesday, July 8th.

Canadian Pacific Kansas City Stock Up 1.5%

Shares of CP stock opened at $89.73 on Friday. The firm's fifty day moving average price is $88.76 and its two-hundred day moving average price is $85.90. The company has a current ratio of 0.59, a quick ratio of 0.50 and a debt-to-equity ratio of 0.47. Canadian Pacific Kansas City has a 1 year low of $68.42 and a 1 year high of $96.90. The firm has a market capitalization of $78.52 billion, a P/E ratio of 28.76, a PEG ratio of 1.86 and a beta of 1.13.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP last released its earnings results on Wednesday, October 28th. The transportation company reported $0.91 earnings per share for the quarter, missing the consensus estimate of $0.94 by ($0.03). Canadian Pacific Kansas City had a net margin of 24.14% and a return on equity of 9.22%. The firm had revenue of $2.96 billion during the quarter, compared to the consensus estimate of $2.96 billion. During the same period in the prior year, the business posted $1.10 earnings per share. Canadian Pacific Kansas City's quarterly revenue was up 15.2% compared to the same quarter last year. On average, equities analysts predict that Canadian Pacific Kansas City will post 3.67 EPS for the current fiscal year.

Canadian Pacific Kansas City Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, January 25th. Investors of record on Thursday, December 31st will be paid a C$0.27 dividend. This represents a $1.07 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend is Thursday, December 31st. Canadian Pacific Kansas City's payout ratio is 24.04%.

More Canadian Pacific Kansas City News

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

• Positive Sentiment: UBS maintained its Buy rating, supporting the view that CP’s long-term North American rail network and growth opportunities remain attractive. UBS Sticks to Its Buy Rating for Canadian Pacific Kansas City
• Positive Sentiment: Analysts remain bullish on CP among industrial stocks, reflecting confidence in its earnings potential and strategic positioning. Analysts Are Bullish on Canadian Pacific Kansas City
• Positive Sentiment: CP signed a new five-year agreement with Elk Valley Resources, providing greater visibility for future freight volumes and revenue. CP Signs a New Five-Year Agreement with Elk Valley Resources
• Positive Sentiment: Management reported third-quarter revenue of approximately $2.96 billion, up 15.2% year over year, with record intermodal performance highlighted in the earnings call. CP Q3 2026 Earnings Call Highlights
• Neutral Sentiment: CP declared a quarterly dividend of C$0.27 per share, equivalent to an annualized C$1.07 and an approximately 1.2% yield. The dividend is payable January 25, 2027, to shareholders of record December 31. CP Declares Dividend Payable January 25, 2027
• Negative Sentiment: Third-quarter EPS was $0.91, below the $0.94 analyst consensus and down from $1.10 a year earlier. Reports attributed pressure to higher fuel costs, tempering the impact of strong revenue growth. CP Q3 Growth Meets Fuel Pressure
• Negative Sentiment: Stephens lowered its price target from $96 to $93 and kept an Equal Weight rating, signaling more limited near-term upside despite the firm’s remaining target premium. Stephens CP Rating and Price Target

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Ascent Group LLC increased its holdings in Canadian Pacific Kansas City by 22.2% in the third quarter. Ascent Group LLC now owns 3,219 shares of the transportation company's stock valued at $274,000 after purchasing an additional 585 shares during the period. Markel Group Inc. raised its position in Canadian Pacific Kansas City by 8.9% during the 3rd quarter. Markel Group Inc. now owns 79,500 shares of the transportation company's stock worth $6,765,000 after purchasing an additional 6,500 shares during the last quarter. Provenance Wealth Advisors LLC acquired a new position in Canadian Pacific Kansas City during the 3rd quarter worth about $26,000. Integrity Alliance LLC. lifted its holdings in Canadian Pacific Kansas City by 17.5% during the 3rd quarter. Integrity Alliance LLC. now owns 5,225 shares of the transportation company's stock worth $445,000 after buying an additional 779 shares during the period. Finally, First Nebraska Trust Co acquired a new position in Canadian Pacific Kansas City during the 3rd quarter worth about $259,000. Institutional investors and hedge funds own 72.20% of the company's stock.

About Canadian Pacific Kansas City

Canadian Pacific Kansas City Limited NYSE: CP is a North American transportation company that operates Canadian Pacific Kansas City (CPKC), a Class I freight railway. The company was created in 2023 through the combination of Canadian Pacific and Kansas City Southern, forming the first single-line railroad connecting Canada, the United States and Mexico.

CPKC transports a broad range of freight, including grain and fertilizers, coal, forest products, automotive goods, energy and chemicals, industrial and consumer products, and intermodal shipments.

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