Raymond James has revised its price target for Canadian Pacific Kansas City (CP, Financial), reducing it to $115 from a previous target of $130 while maintaining an Outperform rating. This adjustment reflects a less optimistic outlook for the Canadian railroad sector in 2025, driven by rising macroeconomic uncertainties.
Earlier this year, Canadian Pacific Kansas City experienced volatility in its first-quarter traffic, primarily due to a severe freeze in February. Even though both Canadian Pacific Kansas City and CN (CNI) managed to recover swiftly and conclude the quarter positively, this temporary improvement has not been enough to bolster confidence in future performance. Analysts suggest that the broader economic uncertainties are overshadowing these gains, leading to the revised outlook.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 22 analysts, the average target price for Canadian Pacific Kansas City Ltd (CP, Financial) is $88.93 with a high estimate of $115.32 and a low estimate of $72.98. The average target implies an upside of 22.07% from the current price of $72.85. More detailed estimate data can be found on the Canadian Pacific Kansas City Ltd (CP) Forecast page.
Based on the consensus recommendation from 26 brokerage firms, Canadian Pacific Kansas City Ltd's (CP, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Canadian Pacific Kansas City Ltd (CP, Financial) in one year is $109.24, suggesting a upside of 49.95% from the current price of $72.85. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Canadian Pacific Kansas City Ltd (CP) Summary page.
