Goldman Sachs expects Nvidia ’beat and raise,’ lifts price target to $240
Investing.com - Jefferies has reduced its price target on Canadian Pacific Kansas City Limited (NYSE:CP) to $90.00 from $95.00 while maintaining a Buy rating on the stock. This target remains above the analyst consensus high target of $94.72, according to InvestingPro data, which shows CP is currently trading at $73.17.
The railway operator’s third-quarter results were in line with expectations, with adjusted operating ratio remaining flat sequentially at 60.7%, representing a 220 basis point year-over-year improvement. This operational efficiency complements CP’s impressive 52.5% gross profit margin.
Canadian Pacific Kansas City reiterated its 2025 outlook, which includes mid-single-digit revenue ton-mile growth, a sub-60 operating ratio, and 10-14% earnings per share growth, while emphasizing its longer-term EPS compound annual growth rate target of mid-teens. InvestingPro analysis indicates CP currently trades at a P/E of 22.65, suggesting investors are pricing in this growth potential. The company has maintained dividend payments for 25 consecutive years, with 17.9% dividend growth over the last twelve months.
Jefferies noted that while industry merger discussions remain a focal point, the firm believes Canadian Pacific is well-positioned with its unique tri-country network to continue creating and executing growth opportunities regardless of how industry consolidation unfolds.
The price target adjustment comes as Canadian Pacific continues to integrate operations following its merger with Kansas City Southern, which created the first rail network connecting Canada, the United States, and Mexico.
In other recent news, Canadian Pacific Kansas City reported its third-quarter 2025 earnings, revealing strong revenue growth with figures reaching $3.7 billion, slightly exceeding forecasts. However, the company’s earnings per share (EPS) came in at C$1.10, which was just shy of the anticipated C$1.11. Despite this minor shortfall, analyst firms Evercore ISI and BofA Securities have maintained their positive outlooks on the company. Evercore ISI adjusted its price target for Canadian Pacific Kansas City to $87 while keeping an Outperform rating. Similarly, BofA Securities lowered its price target to $92 but continues to rate the stock as a Buy. Notably, BofA highlighted Canadian Pacific’s strong EPS growth, which it considers the best performance in the rail sector. These developments reflect the company’s ongoing strategic initiatives and investor confidence in its future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.