Bank of America Securities analyst Ken Hoexter has reiterated their bullish stance on CP stock, giving a Buy rating on July 2.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Ken Hoexter’s rating is based on Canadian Pacific Kansas City’s strong performance in key areas such as intermodal and grain, which have shown significant year-over-year growth. The company’s Revenue Ton Miles (RTMs) exceeded expectations, with intermodal and grain volumes leading the way, contributing to an overall increase in RTMs. Despite some challenges like the negative mix impact and IT cutover issues, the company is expected to achieve a sequential improvement in its operating ratio, indicating operational efficiency.
Furthermore, Ken Hoexter has raised the price objective to $91, reflecting confidence in the company’s future earnings growth. The decision to maintain a Buy rating is supported by the expectation of low- to mid-teens EPS growth and the company’s ability to manage currency impacts. Overall, the combination of strong volume growth, operational improvements, and positive earnings outlook justifies the Buy rating for Canadian Pacific Kansas City.
Hoexter covers the Industrials sector, focusing on stocks such as CSX, Werner Enterprises, and ArcBest. According to TipRanks, Hoexter has an average return of 1.9% and a 50.40% success rate on recommended stocks.
In another report released on July 2, RBC Capital also maintained a Buy rating on the stock with a C$127.00 price target.