Fadi Chamoun, an analyst from BMO Capital, reiterated the Buy rating on Canadian Pacific Kansas City. The associated price target is C$129.00.
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Fadi Chamoun has given his Buy rating due to a combination of factors that highlight Canadian Pacific Kansas City’s potential for growth and resilience in the current market. The company has reaffirmed its full-year 2025 guidance, indicating confidence in achieving a 10–14% EPS growth, even amidst a challenging freight market. This growth is expected to continue, with potential for acceleration as market conditions improve.
Additionally, despite concerns about industry consolidation affecting valuations, Chamoun believes CPKC is well-positioned to handle various M&A scenarios. The company’s performance in Q3/25 was in line with expectations, demonstrating strong operating efficiency and the ability to navigate near-term headwinds. The merger of CP Rail and Kansas City Southern networks is also seen as a significant opportunity for expanding the addressable freight market, supporting long-term organic volume growth.