Analyst Ken Hoexter of Bank of America Securities reiterated a Buy rating on Canadian Pacific Kansas City (CP – Research Report), reducing the price target to $82.00.
Ken Hoexter has given his Buy rating due to a combination of factors including Canadian Pacific Kansas City’s strong financial performance and strategic positioning. The company reported a 7% year-over-year increase in EPS for the first quarter of 2025, surpassing both Ken’s and the street’s expectations. Despite concerns about tariffs due to its cross-border operations, the company has demonstrated robust volume growth, with revenue ton miles up 5% quarter-to-date.
Additionally, Canadian Pacific Kansas City has shown resilience in its core operations, with revenues increasing by 8% year-over-year, driven by higher carloads and revenue per car. The company’s operating income also exceeded expectations, reflecting strong yield management. Although the price objective was adjusted to US$82 due to currency impacts, the company’s long-term growth prospects and improved operating ratio support the Buy rating.
In another report released yesterday, Raymond James also reiterated a Buy rating on the stock with a C$115.00 price target.