
CP Stock Forecast & Price Target
CP Analyst Ratings
Bulls say
Canadian Pacific Kansas City (CPKC) displayed robust financial performance, with revenue growth of 2.7% year-over-year, supported by a notable increase of 6.5% in revenue-ton-miles (RTMs) and positive volume trends, particularly in grain and intermodal services. The company's leverage ratio improved to 3.0x despite significant capital expenditures, including $1.4 billion in share buybacks, while free cash flow reached $605 million, indicating strong operational efficiency and cash generation capabilities. Additionally, a substantial 11% year-over-year increase in grain volumes showcases strong demand fundamentals, particularly in cross-border movements to Mexico, further enhancing CPKC's growth outlook.
Bears say
Canadian Pacific Kansas City's (CPKC) operating income increased by 5.4% year-over-year; however, it fell short of expectations by approximately 2.5%, with an operating ratio of 60.7%, which was impacted by systems integration issues that minimally affected profitability. The downward revision of EPS estimates for 2026 and 2027 reflects anticipated challenges, including a reduction in EPS due to system integration disruptions and lower volume growth forecasts, with a significant decline in QTD volumes trending down by 8%. Key risks include potential for worse-than-expected growth from major ports, adverse weather effects on agriculture, currency fluctuations affecting cross-border shipping, and broader economic uncertainties that could dampen industrial production and consumer demand.
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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