Canadian Pacific Kansas City (TSE:CP) has seen its price target adjusted by Desjardins, dropping from C$133.00 to C$130.00, according to a research report distributed to investors on Monday. Despite this reduction, Desjardins maintains a “buy” rating on the stock, reflecting confidence in the company’s future performance.
In recent weeks, several analysts have provided updates on Canadian Pacific Kansas City. ATB Capital raised its price target from C$124.00 to C$125.00 and assigned an “outperform” rating on October 15, 2023. Conversely, on November 11, 2023, Sanford C. Bernstein lowered its target price significantly from C$121.00 to C$114.00. CIBC also made a slight upward adjustment from C$122.00 to C$123.00, issuing an “outperform” rating on October 30, 2023.
National Bank downgraded shares from a “strong-buy” rating to a “hold” rating on January 8, 2024. Additionally, National Bankshares reduced their target price from C$124.00 to C$119.00, giving the company a “sector perform” rating on the same day.
Currently, one analyst rates the stock as a “Strong Buy,” while eight others have assigned a “Buy” rating. Four analysts issued a “Hold” rating, and one has a “Sell” rating. According to MarketBeat, the consensus rating for Canadian Pacific Kansas City stands at “Moderate Buy,” with an average target price of C$120.00.
Recent Financial Performance
Canadian Pacific Kansas City reported its quarterly earnings on October 29, 2023, revealing earnings per share of C$1.10 for the quarter. The company displayed a robust net margin of 24.50% and a return on equity of 8.22%. Revenue reached C$3.66 billion during this reporting period. Analysts project that Canadian Pacific Kansas City will achieve approximately C$4.34 earnings per share for the current fiscal year.
Canadian Pacific operates as a Class-1 railroad with a significant presence across Canada and parts of the Midwestern and Northeastern United States, covering over 12,500 miles of track. The company ranks as the second-smallest Class I railroad by revenue and route miles.
In 2021, Canadian Pacific Kansas City transported a diverse range of goods, including grain (22% of freight revenue), intermodal containers (22%), various energy products, chemicals, and plastics (20%), coal (8%), as well as fertilizers and automotive products.
As analysts continue to evaluate Canadian Pacific Kansas City, the adjustments in price targets reflect ongoing assessments of the company’s market position and future prospects. Investors will be closely monitoring the developments and performance metrics as the year progresses.
