Wolfe Research Upgrades Canadian Pacific Kansas City Limited (CP) to Outperform

Wolfe Research analyst Scott Group upgraded Canadian Pacific Kansas City Limited (NYSE: CP) from Peerperform to Outperform, PT $86.00.

The analyst comments "Upgrading CP to Outperform. Since announcing its transformational acquisition of KSU back in March 2021, CP's stock is basically flat over the past ~3.5 years, slightly lagging the other rails and materially underperforming the S&P 500. CP has now digested the lengthy STB approval process, initial dilution from the transaction, and a challenging freight/rail backdrop broadly. So, CP's large valuation premium has compressed materially, and we expect EPS growth to start accelerating the next couple of years. So, we see a more favorable setup for the stock from here, even with continued near-term uncertainty around potential Canadian and Mexican tariffs."

For an analyst ratings summary and ratings history on Canadian Pacific Kansas City Limited click here. For more ratings news on Canadian Pacific Kansas City Limited click here.

Shares of Canadian Pacific Kansas City Limited closed at $77.13 yesterday.

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