Goldman Sachs downgraded Canadian Pacific Kansas City (CP) to Neutral from Buy with an unchanged price target of $91. The firm shifted its investment recommendations to favor the trucking sector and now has a more neutral view on the rail sector and rail-adjacent sector. While fundamental risks remain, largely around tariffs and possible impacts to consumer demand and global freight flows, it best to increase exposure on the “early side” to transportation names likely to benefit from the next earnings upgrade cycle, the analyst tells investors in a research note. Goldman’s strategy is to “buy when fundamentals are as pressured as they can be.” It believes truckers’ share price underperformance and a freight recovery analysis suggest that current share prices offer strong return potential against the risk outstanding.
Don’t Miss TipRanks’ Half Year Sale
- Take advantage of TipRanks Premium for 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on CP:
- CPKC receives arbitration decision establishing new TCRC collective agreements
- Americold Realty Trust breaks ground in Port Saint John, New Brunswick
- Canadian Pacific Kansas City says ‘probable’ will overachieve guidance
- Canadian Pacific Kansas City price target raised to C$127 from C$119 at CIBC
- Canadian Pacific Kansas City price target raised to $90 from $82 at BofA