Citigroup has adjusted its price target for Canadian Pacific Kansas City (TSE:CP) from C$88.00 to C$86.00, as noted in a research report released on Thursday. Despite this reduction, the financial institution maintains a buy rating on the stock, highlighting ongoing confidence in the company’s performance.
This revision comes as part of broader evaluations from various analysts regarding Canadian Pacific Kansas City. On October 15, 2023, ATB Capital raised its target price from C$124.00 to C$125.00, assigning the company an “outperform” rating. Similarly, Scotiabank increased its price objective from C$119.00 to C$124.00, also recommending an “outperform” rating.
Analyst Ratings and Market Consensus
Additional insights highlight the positive outlook from other financial institutions. CIBC raised its price objective from C$122.00 to C$123.00, while Royal Bank of Canada increased its target from C$129.00 to C$137.00, both maintaining an “outperform” rating. Conversely, Sanford C. Bernstein lowered its target from C$121.00 to C$114.00 in a report dated November 11.
A review of current analyst ratings shows a mixed response to Canadian Pacific Kansas City’s stock performance. One analyst has given it a “Strong Buy” rating, while eight have assigned a “Buy” rating. Four analysts issued a “Hold” rating, and one has recommended a “Sell.” According to MarketBeat, the consensus rating stands at “Moderate Buy,” with an average target price of C$118.62.
Recent Financial Performance
Canadian Pacific Kansas City recently reported its quarterly earnings on January 28, 2024, revealing earnings per share (EPS) of C$1.33 for the quarter. The company demonstrates a robust net margin of 24.50% and a return on equity of 8.22%. Overall revenue for the quarter reached C$3.92 billion, showcasing the company’s strong market presence.
Looking ahead, analysts predict that Canadian Pacific Kansas City will report an EPS of approximately C$4.34 for the current fiscal year, reflecting ongoing growth potential.
In related news, insider activity has been observed within the company. On December 23, 2023, insider Cassandra P. Quach sold 4,135 shares of the company’s stock at an average price of C$102.35, resulting in a total transaction value of C$423,217.25. At present, corporate insiders hold roughly 0.03% of the stock.
Canadian Pacific Kansas City operates as a major Class-1 railroad, with a network extending over 12,500 miles across Canada and parts of the United States. The company is pivotal in transporting various goods, including grain, intermodal containers, energy products, and automotive products, contributing significantly to its freight revenue.
As the market evolves, stakeholders will continue to monitor Canadian Pacific Kansas City’s performance and analyst evaluations closely.
