Desjardins Has Pessimistic View of TSE:CP FY2026 Earnings

Key Points

• Desjardins has lowered its FY2026 earnings per share (EPS) estimate for Canadian Pacific Kansas City to $5.50, slightly down from a prior estimate of $5.59.
• Multiple analysts have varied ratings for the stock, with Desjardins maintaining a "Buy" rating and a price objective of $123.00, while Goldman Sachs downgraded it to a "hold" rating.
• The company announced a quarterly dividend of $0.228 per share, which amounts to an annualized dividend of $0.91 and a yield of 0.9%.

Canadian Pacific Kansas City Limited (TSE:CP - Free Report) NYSE: CP - Research analysts at Desjardins decreased their FY2026 earnings per share estimates for shares of Canadian Pacific Kansas City in a note issued to investors on Wednesday, July 30th. Desjardins analyst B. Poirier now forecasts that the company will post earnings per share of $5.50 for the year, down from their prior estimate of $5.59. Desjardins currently has a "Buy" rating and a $123.00 target price on the stock. The consensus estimate for Canadian Pacific Kansas City's current full-year earnings is $4.34 per share. Desjardins also issued estimates for Canadian Pacific Kansas City's FY2027 earnings at $6.29 EPS.

Other research analysts also recently issued research reports about the company. National Bankshares raised Canadian Pacific Kansas City from a "sector perform" rating to an "outperform" rating and set a C$119.00 price objective on the stock in a research note on Thursday, July 31st. Raymond James Financial raised their price target on Canadian Pacific Kansas City from C$115.00 to C$120.00 and gave the stock an "outperform" rating in a research note on Thursday, July 17th. National Bank Financial raised Canadian Pacific Kansas City from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, July 30th. Royal Bank Of Canada cut their price target on Canadian Pacific Kansas City from C$122.00 to C$121.00 and set an "outperform" rating on the stock in a report on Thursday, May 1st. Finally, ATB Capital lifted their price target on Canadian Pacific Kansas City from C$123.00 to C$124.00 and gave the stock an "outperform" rating in a research report on Thursday, July 31st. One analyst has rated the stock with a sell rating, two have assigned a hold rating, ten have given a buy rating and four have assigned a strong buy rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Buy" and a consensus target price of C$119.46.

Canadian Pacific Kansas City Trading Up 2.8%

Shares of CP traded up C$2.86 during mid-day trading on Monday, hitting C$103.42. 2,105,581 shares of the company's stock traded hands, compared to its average volume of 1,620,851. The company has a quick ratio of 0.42, a current ratio of 0.53 and a debt-to-equity ratio of 49.64. Canadian Pacific Kansas City has a 1 year low of C$94.60 and a 1 year high of C$119.20. The firm has a market capitalization of C$96.67 billion, a P/E ratio of 27.30, a PEG ratio of 2.32 and a beta of 0.79. The business's 50-day moving average price is C$108.98 and its 200-day moving average price is C$107.68.

Canadian Pacific Kansas City Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, October 27th. Shareholders of record on Friday, September 26th will be given a $0.228 dividend. This represents a $0.91 dividend on an annualized basis and a yield of 0.9%. Canadian Pacific Kansas City's payout ratio is currently 20.06%.

Insider Buying and Selling

In other Canadian Pacific Kansas City news, Senior Officer Nadeem Velani sold 60,000 shares of the firm's stock in a transaction that occurred on Thursday, June 12th. The shares were sold at an average price of C$110.30, for a total value of C$6,618,006.00. Also, Senior Officer Maeghan Dawn Albiston sold 12,950 shares of the firm's stock in a transaction that occurred on Tuesday, May 27th. The shares were sold at an average price of C$112.04, for a total transaction of C$1,450,853.25. Insiders sold a total of 343,599 shares of company stock worth $38,107,437 over the last quarter. Company insiders own 0.03% of the company's stock.

About Canadian Pacific Kansas City

Canadian Pacific is a CAD 8 billion Class-1 railroads operating on more than 12,500 miles of track across most of Canada and into parts of the Midwestern and Northeastern United States. It is the second-smallest Class I railroad by revenue and route miles. In 2021, CP hauled shipments of grain (22% of freight revenue), intermodal containers (22%), energy products (like crude and frac sand), chemicals, and plastics (20%) coal (8%), fertilizer and potash (10%), automotive products (5%), and a diverse mix of other merchandise.