Canadian Pacific Kansas City price target lowered to $79 from $85 at Stifel
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 14 2025
0mins
Should l Buy CP?
Analyst Rating Update: Stifel analyst Benjamin Nolan has reduced the price target for Canadian Pacific Kansas City from $85 to $79 while maintaining a Hold rating on the shares.
Market Outlook: The analyst notes that Q1 carload volumes were mixed but not significantly negative, and anticipates results to be in line with or slightly below previous expectations, highlighting concerns related to developments in Washington D.C. rather than Q1 performance.
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Analyst Views on CP
Wall Street analysts forecast CP stock price to rise
15 Analyst Rating
13 Buy
2 Hold
0 Sell
Strong Buy
Current: 83.930
Low
63.35
Averages
86.07
High
92.86
Current: 83.930
Low
63.35
Averages
86.07
High
92.86
About CP
Canadian Pacific Kansas City Limited (CPKC) is a single-line transnational railway linking Canada, the United States and Mexico, with unrivaled access to major ports from Vancouver to Atlantic Canada to the Gulf Coast to Lazaro Cardenas, Mexico. The Company operates over 20,000 route miles and provides North American customers unparalleled rail service and network reach to key markets across the continent. It delivers integrated freight transportation, logistics, and supply chain solutions across North America. Its network supports the movement of bulk commodities, intermodal freight, and merchandise. It offers a suite of freight transportation services, logistics solutions and supply chain expertise. It serves sectors including grain (Canada and U.S.), automotive, intermodal, forest and industrial products, energy, chemicals, plastics, and transload. The network also links auto assembly plants, parts suppliers, and distribution centers, supporting the automotive supply chain.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Canadian Pacific Railway Issues $1.2 Billion in Notes
- Bond Issuance Size: Canadian Pacific Railway Company is set to issue $600 million in 4.000% notes due 2029 and $600 million in 5.500% notes due 2056, totaling $1.2 billion, aimed at optimizing its capital structure and reducing financing costs.
- Clear Use of Proceeds: The proceeds from this bond issuance will primarily be used to refinance existing debt and for general corporate purposes, which is expected to enhance the company's financial flexibility and support future investment plans.
- Market Reaction Tepid: Following the bond issuance announcement, Canadian Pacific's stock closed lower at CAD 118.41, reflecting market concerns regarding the company's current valuation and cautious sentiment towards future growth prospects.
- Performance Expectations Adjusted: Although the company targets low double-digit earnings growth in 2026, its non-GAAP EPS of C$1.33 missed expectations by C$0.02, and revenue of C$3.9 billion fell short by C$20 million, indicating challenges in business growth.
See More
CPKC Issues $1.2 Billion in Bonds for Refinancing
- Bond Issuance Size: CPKC announced that its wholly-owned subsidiary will issue $600 million of 4.000% Notes and $600 million of 5.500% Notes, expected to close on March 6, 2026, aimed at refinancing existing debt to enhance financial flexibility.
- Clear Use of Proceeds: The net proceeds from this offering will primarily be used for refinancing outstanding debt and general corporate purposes, indicating the company's proactive strategy in optimizing its capital structure, which is expected to improve its long-term financial health.
- Strong Underwriter Lineup: The bond issuance is backed by prominent financial institutions including Goldman Sachs, Barclays, and Citigroup, reflecting market confidence in CPKC's debt instruments and enhancing the company's reputation in capital markets.
- Compliance and Transparency: The offering adheres to an effective registration statement with the SEC, ensuring compliance and boosting investor trust, while laying the groundwork for potential future capital market activities and enhancing transparency among investors.
See More
CPKC Issues $1.2 Billion in Bonds for Refinancing
- Bond Issuance Size: CPKC announced that its wholly-owned subsidiary will issue $600 million of 4.000% Notes and $600 million of 5.500% Notes, expected to close on March 6, 2026, primarily aimed at refinancing existing debt, thereby optimizing capital structure and reducing financial costs.
- Strong Underwriter Lineup: The bond offering is backed by prominent financial institutions including Goldman Sachs, Barclays, Citigroup, and SMBC Nikko Securities, indicating strong market demand for CPKC's debt instruments and enhancing the company's credibility in capital markets.
- Clear Use of Proceeds: The net proceeds from the issuance will primarily be used for refinancing and general corporate purposes, with potential short-term investments in investment-grade securities or bank deposits, providing the company with flexible funding management options to support future business growth.
- Optimistic Market Outlook: As the only single-line transnational railway linking Canada, the U.S., and Mexico, CPKC, with its 20,000-mile rail network and strong market coverage, is expected to benefit from North American economic recovery and growing logistics demand, further solidifying its market position.
See More
CPKC CEO to Speak at J.P. Morgan Conference
- Conference Details: CPKC President and CEO Keith Creel will address the J.P. Morgan 2026 Industrials Conference on March 18, 2026, at 8:05 AM ET, highlighting the company's strategic direction and growth potential in the rail transport sector.
- Live Streaming and Replay: The event will feature a live audio webcast accessible via CPKC's investor website, with a replay available post-event, ensuring investors can stay informed on key developments.
- Company Overview: CPKC is the only single-line transnational railway linking Canada, the U.S., and Mexico, stretching approximately 20,000 route miles and employing 20,000 railroaders, providing unparalleled rail service and network reach.
- Market Advantage: CPKC leverages its extensive rail network to offer exceptional freight transportation services and logistics solutions to North American customers, further solidifying its competitive position in key markets.
See More
CPKC Unveils Commemorative Locomotive for Independence Anniversary
- Commemorative Livery Launch: CPKC's KCS 1776 locomotive livery celebrates the 250th anniversary of the Declaration of Independence, featuring red and blue colors along with the America250 logo, reflecting the company's respect for American history and contributions.
- Locomotive Specifications: The new locomotive is a Tier 4 ET44AC model built at Wabtec's Texas facility, marking CPKC's ongoing investment in environmentally friendly technology, enhancing its competitiveness in the freight industry.
- Network Coverage: CPKC operates across 19 U.S. states with an 8,800-mile rail network, representing nearly 40% of its North American operations, providing services to agriculture, automotive, and energy sectors, highlighting its vital role in the national economy.
- Employee Contributions: About one-third of CPKC's workforce is based in the U.S., serving thousands of businesses, demonstrating the company's critical role in facilitating economic development and connecting regions across the country.
See More
CPKC Unveils Commemorative Locomotive for America's 250th Anniversary
- Locomotive Launch: CPKC has unveiled the 1776 locomotive to commemorate the 250th anniversary of American independence, manufactured in Fort Worth, Texas, featuring red and blue colors that reflect the nation's history and culture.
- Historical Significance: CPKC President Keith Creel, a U.S. Army veteran, emphasizes the pride in celebrating the contributions of all Americans throughout history alongside 6,000 railroad employees, showcasing a vision of hope for the future.
- Rail Network Coverage: CPKC operates across 19 U.S. states with an 8,800-mile rail network, spanning from the Midwest to the Gulf Coast, serving various industries including agriculture and automotive, highlighting the vital role of railroads in national development.
- Company Background: CPKC is the only transnational railway linking Canada, the U.S., and Mexico, with approximately 20,000 route miles, committed to providing exceptional rail service and logistics solutions to North American customers.
See More
Canadian Pacific Railway Issues $1.2 Billion in Notes
- Bond Issuance Size: Canadian Pacific Railway Company is set to issue $600 million in 4.000% notes due 2029 and $600 million in 5.500% notes due 2056, totaling $1.2 billion, aimed at optimizing its capital structure and reducing financing costs.
- Clear Use of Proceeds: The proceeds from this bond issuance will primarily be used to refinance existing debt and for general corporate purposes, which is expected to enhance the company's financial flexibility and support future investment plans.
- Market Reaction Tepid: Following the bond issuance announcement, Canadian Pacific's stock closed lower at CAD 118.41, reflecting market concerns regarding the company's current valuation and cautious sentiment towards future growth prospects.
- Performance Expectations Adjusted: Although the company targets low double-digit earnings growth in 2026, its non-GAAP EPS of C$1.33 missed expectations by C$0.02, and revenue of C$3.9 billion fell short by C$20 million, indicating challenges in business growth.
See More
CPKC Issues $1.2 Billion in Bonds for Refinancing
- Bond Issuance Size: CPKC announced that its wholly-owned subsidiary will issue $600 million of 4.000% Notes and $600 million of 5.500% Notes, expected to close on March 6, 2026, aimed at refinancing existing debt to enhance financial flexibility.
- Clear Use of Proceeds: The net proceeds from this offering will primarily be used for refinancing outstanding debt and general corporate purposes, indicating the company's proactive strategy in optimizing its capital structure, which is expected to improve its long-term financial health.
- Strong Underwriter Lineup: The bond issuance is backed by prominent financial institutions including Goldman Sachs, Barclays, and Citigroup, reflecting market confidence in CPKC's debt instruments and enhancing the company's reputation in capital markets.
- Compliance and Transparency: The offering adheres to an effective registration statement with the SEC, ensuring compliance and boosting investor trust, while laying the groundwork for potential future capital market activities and enhancing transparency among investors.
See More
CPKC Issues $1.2 Billion in Bonds for Refinancing
- Bond Issuance Size: CPKC announced that its wholly-owned subsidiary will issue $600 million of 4.000% Notes and $600 million of 5.500% Notes, expected to close on March 6, 2026, primarily aimed at refinancing existing debt, thereby optimizing capital structure and reducing financial costs.
- Strong Underwriter Lineup: The bond offering is backed by prominent financial institutions including Goldman Sachs, Barclays, Citigroup, and SMBC Nikko Securities, indicating strong market demand for CPKC's debt instruments and enhancing the company's credibility in capital markets.
- Clear Use of Proceeds: The net proceeds from the issuance will primarily be used for refinancing and general corporate purposes, with potential short-term investments in investment-grade securities or bank deposits, providing the company with flexible funding management options to support future business growth.
- Optimistic Market Outlook: As the only single-line transnational railway linking Canada, the U.S., and Mexico, CPKC, with its 20,000-mile rail network and strong market coverage, is expected to benefit from North American economic recovery and growing logistics demand, further solidifying its market position.
See More
CPKC CEO to Speak at J.P. Morgan Conference
- Conference Details: CPKC President and CEO Keith Creel will address the J.P. Morgan 2026 Industrials Conference on March 18, 2026, at 8:05 AM ET, highlighting the company's strategic direction and growth potential in the rail transport sector.
- Live Streaming and Replay: The event will feature a live audio webcast accessible via CPKC's investor website, with a replay available post-event, ensuring investors can stay informed on key developments.
- Company Overview: CPKC is the only single-line transnational railway linking Canada, the U.S., and Mexico, stretching approximately 20,000 route miles and employing 20,000 railroaders, providing unparalleled rail service and network reach.
- Market Advantage: CPKC leverages its extensive rail network to offer exceptional freight transportation services and logistics solutions to North American customers, further solidifying its competitive position in key markets.
See More
CPKC Unveils Commemorative Locomotive for Independence Anniversary
- Commemorative Livery Launch: CPKC's KCS 1776 locomotive livery celebrates the 250th anniversary of the Declaration of Independence, featuring red and blue colors along with the America250 logo, reflecting the company's respect for American history and contributions.
- Locomotive Specifications: The new locomotive is a Tier 4 ET44AC model built at Wabtec's Texas facility, marking CPKC's ongoing investment in environmentally friendly technology, enhancing its competitiveness in the freight industry.
- Network Coverage: CPKC operates across 19 U.S. states with an 8,800-mile rail network, representing nearly 40% of its North American operations, providing services to agriculture, automotive, and energy sectors, highlighting its vital role in the national economy.
- Employee Contributions: About one-third of CPKC's workforce is based in the U.S., serving thousands of businesses, demonstrating the company's critical role in facilitating economic development and connecting regions across the country.
See More
CPKC Unveils Commemorative Locomotive for America's 250th Anniversary
- Locomotive Launch: CPKC has unveiled the 1776 locomotive to commemorate the 250th anniversary of American independence, manufactured in Fort Worth, Texas, featuring red and blue colors that reflect the nation's history and culture.
- Historical Significance: CPKC President Keith Creel, a U.S. Army veteran, emphasizes the pride in celebrating the contributions of all Americans throughout history alongside 6,000 railroad employees, showcasing a vision of hope for the future.
- Rail Network Coverage: CPKC operates across 19 U.S. states with an 8,800-mile rail network, spanning from the Midwest to the Gulf Coast, serving various industries including agriculture and automotive, highlighting the vital role of railroads in national development.
- Company Background: CPKC is the only transnational railway linking Canada, the U.S., and Mexico, with approximately 20,000 route miles, committed to providing exceptional rail service and logistics solutions to North American customers.
See More
