CP Stock Forecast & Price Target

The positive outlook for Canadian Pacific Kansas City (CPKC) is supported by a 3% year-over-year increase in revenues, driven by higher freight volumes and solid pricing gains, with expectations for continued growth into 2025. Operationally, the company demonstrated resilience against work stoppages and adverse weather, reflected in improved train metrics, while a 2% increase in revenue ton-miles (RTMs) in Q4 highlights strong performance in the bulk segment, particularly from Canadian grain shipments. Furthermore, CPKC's strategic position is bolstered by a projected 6.5% rise in Canadian regulated grain pricing and sustained demand in merchandise segments, positioning the company favorably for ongoing revenue growth and operational leverage.

Canadian Pacific Kansas City (CPKC) has seen a reduction in its earnings growth estimate for 2025 from 7% to 4%, indicating a lack of confidence in future financial performance. The company's total revenue of $3.87 billion fell short of the anticipated $3.96 billion, primarily due to lower yield and disappointing intermodal revenues linked to weak truck pricing constraints. Furthermore, various risks, including potential growth shortfalls from key ports, adverse weather effects, currency fluctuations, and overall economic volatility, are projected to negatively impact EPS and lead to a further decline in the stock's valuation.