
CP Stock Forecast & Price Target
CP Analyst Ratings
Bulls say
Canadian Pacific Kansas City's revenue experienced a year-over-year growth of 2.7%, supported by a robust increase in revenue ton-miles (RTMs) of 6.5%, despite a 3.6% compression in yield, highlighting strong operational efficiencies. The company demonstrated financial resilience with a leverage ratio of 3.0x, even against the backdrop of $1.4 billion in share buybacks, while free cash flow rose to $605 million, indicating solid cash generation capabilities. Growth in grain volumes by 11% year-over-year, alongside a 40% increase in domestic intermodal volumes driven by the successful MMX service, reflects strong market demand and positions CPKC for continued expansion in vital segments.
Bears say
Canadian Pacific Kansas City's operating income growth of 5.4% year-over-year fell short of expectations, primarily due to yield headwinds, leading to a current operating ratio of 60.7%. Additionally, integration challenges associated with the Kansas City Southern merger have negatively impacted earnings per share (EPS) estimates for 2026 and 2027, reflecting a downward revision in growth projections amid revenue pressures. Furthermore, declining volume trends, particularly a 1% year-over-year decrease in metals and minerals shipments and an overall 8% drop quarter-to-date, underscore potential risks to future profitability.
This aggregate rating is based on analysts' research of Canadian Pacific Kansas City Limited and is not a guaranteed prediction by Public.com or investment advice.
CP Analyst Forecast & Price Prediction
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