Canadian Pacific upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Ravi Shanker upgraded Canadian Pacific Kansas City (CP) to Overweight from Equal Weight with a price target of C$120, up from C$100. The firm adjusted ratings in the freight transportation group as part of its 2026 outlook. It upgraded its freight transportation industry view to Attractive from In-Line for 2026. Risk/rewards are the best they have been since 2020, “even if the coast is not entirely clear,” the analyst tells investors in a research note. Morgan Stanley acknowledges there is no clear demand catalyst to rely on and headline risk remains high, but it believes the supply side “seems to have a lot more visibility.” Continued capacity exits as a result of driver regulations will be supportive of truckload pricing in 2026, it contends.