
CP Stock Forecast & Price Target
CP Analyst Ratings
Bulls say
Canadian Pacific Kansas City (CPKC) demonstrated robust financial performance with a 2.7% year-over-year revenue growth, attributed mainly to a 6.5% increase in Revenue Ton-Miles (RTMs) while navigating yield compression of 3.6%. The company's leverage ratio saw a modest improvement to 3.0x, alongside a significant boost in free cash flow to $605 million, even with substantial share buybacks totaling $1.4 billion. Notably, grain volumes surged by 11% year-over-year, supported by strong demand in the South and movements into Mexico, while domestic intermodal growth surged by 40% year-over-year through CPKC's MMX service, indicating favorable market conditions and operational efficiency.
Bears say
Canadian Pacific Kansas City's recent financial performance indicates underlying challenges, with operating income growth of 5.4% year-over-year falling short by approximately 2.5%, driven by yield headwinds and system integration issues that negatively impacted earnings per share (EPS). The revisions to future EPS estimates reflect decreasing growth projections, with estimates for 2025 reduced to $4.67 from $4.70 and 2026 dropping to $5.29 from $5.44, primarily influenced by lower expected volumes due to various factors including tariff impacts on cross-border steel. Additionally, a notable 8% decline in quarter-to-date volumes raises concerns regarding the company's ability to achieve anticipated growth, amid risks such as adverse weather conditions, adverse currency fluctuations, and overall economic volatility.
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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