Canadian Pacific Kansas City (TSE: CP) has seen its price target revised downwards by Desjardins from C$133.00 to C$130.00, according to a recent research report distributed to investors. Despite this adjustment, Desjardins maintains a “buy” rating on the stock, indicating continued confidence in the company’s performance.
In addition to Desjardins’ assessment, other analysts have also made recent evaluations regarding Canadian Pacific Kansas City. On October 15, 2023, ATB Capital raised its price target for the company from C$124.00 to C$125.00 and categorized the stock as “outperform.” Conversely, on November 11, 2023, Sanford C. Bernstein reduced its target price from C$121.00 to C$114.00.
CIBC joined the mix by increasing its target price from C$122.00 to C$123.00 on October 30, 2023, while also assigning an “outperform” rating. In contrast, National Bankshares downgraded the stock from a “strong-buy” rating to a “hold” rating on January 8, 2024. The same day, they lowered their target price from C$124.00 to C$119.00, reflecting a more cautious outlook.
Currently, the consensus among analysts shows a range of opinions on Canadian Pacific Kansas City. A single research analyst rates the stock as a “strong buy,” eight analysts have given it a “buy” rating, four have designated a “hold,” and one has issued a “sell” rating. According to MarketBeat, the overall consensus rating stands at “Moderate Buy” with a target price averaging C$120.00.
Recent Financial Performance
On October 29, 2023, Canadian Pacific Kansas City announced its quarterly earnings, reporting earnings per share of C$1.10. The company demonstrated a strong net margin of 24.50% and a return on equity of 8.22%. Revenue for the quarter reached C$3.66 billion, highlighting its robust operational performance amid fluctuating market conditions.
Looking ahead, analysts project that Canadian Pacific Kansas City will achieve an average earnings per share of approximately 4.34 for the current fiscal year, indicating optimistic growth expectations for the railway.
About Canadian Pacific Kansas City
Canadian Pacific Kansas City operates as a Class-1 railroad, covering more than 12,500 miles of track across Canada and parts of the Midwestern and Northeastern United States. With a market capitalization of approximately CAD 8 billion, it is recognized as the second-smallest Class I railroad by revenue.
In 2021, the company’s freight revenue was diversified across various sectors. Grain and intermodal containers each accounted for 22% of revenue, while energy products, chemicals, and plastics contributed 20%. Other significant segments included coal at 8%, fertilizer and potash at 10%, and automotive products at 5%.
As analysts continue to evaluate Canadian Pacific Kansas City, the stock remains an interesting focus for investors looking at the transportation sector in North America.
