StockNews.com Revises Canadian Pacific Kansas City CP Rating to Sell

Analysts at StockNews.com have revised their investment rating for Canadian Pacific Kansas City CP – also trading as TSE:CP – from a 'hold' to a 'sell' in a report published on November 12th, 2023. This adjustment follows a variety of assessments from other research entities over the past months.

Analyst Ratings and Price Targets

Previously, CSFB updated their price target for CP from $87.00 to $88.00, maintaining a 'neutral' stance. JPMorgan Chase & Co. reduced their price target from $125.00 to $122.00 but kept an 'overweight' rating. Similarly, Credit Suisse Group echoed CSFB's sentiment with a bump in target price from $87.00 to $88.00 and a 'neutral' rating. Stephens cut their price objective from $79.00 to $78.00, reiterating an 'equal weight' rating. Barclays made a considerable adjustment, lowering their price target from $89.00 to $84.00. MarketBeat.com records an aggregate 'Moderate Buy' recommendation from investment analysts with an average price target of $98.22.

Company Performance and Share Statistics

The stock of Canadian Pacific Kansas City opened at $70.68 on the NYSE, indicating movement from the fifty-two week lows and highs of $68.92 and $85.40, respectively. The company’s market capitalization comes in at $65.86 billion, supported by P/E and PEG ratios of 21.23 and 2.84, with a beta of 1.04. Canadian Pacific Kansas City maintains a 50-day moving average of $74.21, slightly below its 200-day moving average of $77.76. Financial health indicators reveal a quick ratio of 0.61, a current ratio of 0.70, and a debt-to-equity ratio of 0.52.

In the previous earnings report, Canadian Pacific Kansas City announced a quarterly EPS of $0.69, surpassing the estimated $0.68. The firm posted a net margin of 37.10% with a return on equity of 8.45%, alongside revenues matching the consensus estimate of $2.49 billion. Analysts predict an annual EPS of 2.81 for the current fiscal year.

Institutional Investor Activity

Institutional investors have been adjusting their stakes in CP. Notably, Wedbush Securities Inc. increased their holdings by 2.4%, now owning 5,491 shares. Arkadios Wealth Advisors expanded their position by 4.4%, with a new total of 3,148 shares. Moreover, Valeo Financial Advisors LLC and Global Retirement Partners LLC respectively bumped up their shares by 4.1% and 5.1%. Commonwealth Equity Services LLC slightly raised their stake by 0.3%, reaching a total of 51,089 shares. Overall, institutional ownership accounts for a substantial 67.93% of the company's stock.

About Canadian Pacific Kansas City

Canadian Pacific Kansas City Limited operates a vital transcontinental freight railway, providing services across Canada and the United States. With a strategic base in Calgary, Canada, the company specializes in transporting bulk commodities such as grain, coal, and fertilizers, as well as various merchandise freight categories, demonstrating a crucial role in North American trade and logistics.

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