Canadian Pacific Kansas City stock price target raised by Stephens to $97

Investing.com - Stephens raised its price target on Canadian Pacific Kansas City Limited (NYSE:CP) to $97.00 from $95.00 on Thursday, while maintaining an Overweight rating on the stock. The railway giant, with a market capitalization of $70.6 billion, currently trades at $75.71, with analyst targets ranging from $71.79 to $93.87. InvestingPro data shows the stock trades at a P/E ratio of 25.4x.

The price target adjustment follows Canadian Pacific’s second-quarter adjusted earnings per share of C$1.12, which fell one cent below both Stephens’ and consensus expectations. While the railway operator’s performance showed lower revenue per carload and a slightly higher operating ratio, the company maintains impressive gross profit margins of 52.36% and has achieved 7.33% revenue growth over the last twelve months. InvestingPro subscribers can access 8 additional key financial metrics and detailed analysis in the Pro Research Report.

Canadian Pacific reiterated its fiscal year 2025 guidance for adjusted earnings per share growth of 10%-14% and mid-single digit revenue ton-mile growth. The company’s recent earnings call focused heavily on the Union Pacific/Norfolk Southern merger announcement and its potential implications for the industry.

Stephens noted that Canadian Pacific remains confident in its multi-year outlook and unique position as the only rail network connecting Canada, the United States, and Mexico. The company indicated it will actively engage in the regulatory process to protect its customers and industry interests.

Despite potential near-term uncertainty from the Union Pacific/Norfolk Southern merger announcement, Stephens believes Canadian Pacific remains a compelling multi-year investment story, citing improving service from recent lows and strong core pricing and volume growth. The company has maintained dividend payments for 25 consecutive years, demonstrating consistent shareholder returns. For comprehensive analysis and real-time updates, investors can access detailed financial health scores and additional insights through InvestingPro.

In other recent news, Canadian Pacific Kansas City (CPKC) reported its second-quarter 2025 earnings, which fell slightly below analysts’ expectations. The company announced an earnings per share (EPS) of $1.12, missing the anticipated $1.13. Additionally, CPKC generated $3.7 billion in revenue, which was less than the forecasted $3.8 billion. These results indicate a small shortfall in both earnings and revenue projections for the quarter. Despite these figures, there have been no recent analyst upgrades or downgrades reported for CPKC. Investors may be particularly interested in these developments as they assess the company’s performance and future potential.

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