Stock Price & Analysis

Buy CP stock as it has strong growth potential with improving rail traffic and a recent positive deal announcement.

CP stock is predicted to reach $85 by the end of 2025, driven by strong rail traffic growth and strategic partnerships. Recent data shows a 5.4% year-over-year increase in U.S. rail traffic, with intermodal volume up 8.8%, indicating robust demand. CP's deal with Ballard Power for fuel cell engines further enhances its position in the clean energy sector.

The S1 support level for CP Stock is $69.04 ,The R1 resistant level for CP Stock is $74.19.

As of the end of day on 2025-04-01, the price of CP Stock was $71.05.

The target price for CP Stock according to analyst rating is 90.22, with the highest price target at 130.00 and the lowest at 49.02. Analysts have a Strong Buy rating on CP Stock overall.

The market cap of CP is $66.3B.

Analysis and Insights

Valuation Metrics

Canadian Pacific (CP) currently exhibits elevated valuation metrics compared to industry peers. The price-to-earnings (P/E) ratio stands at 26.16, which is higher than the average for transportation companies, signaling potential overvaluation. Similarly, the EV/EBITDA ratio of 8.08 and P/S ratio of 2.6 further support this assessment, as they exceed typical benchmarks for railroads.

Analyst Sentiment

Recent analyst ratings reflect mixed sentiment. While some firms, like RBC Capital, maintain a "Buy" rating with a price target of $128, others, such as Loop Capital, have downgraded CP to "Strong Sell." This divergence indicates uncertainty about the stock's near-term prospects.

Market Trends

Rail traffic has shown resilience, with intermodal volumes growing 8.8% year-over-year, which could benefit CP. However, the stock's current valuation may already reflect this positive momentum, leaving limited upside potential.

Conclusion

Given the elevated valuation metrics and mixed analyst sentiment, CP appears overvalued at current levels. Investors should exercise caution and consider whether the stock's price aligns with its growth prospects.

Canadian Pacific Kansas City Limited operates a single-line transnational railway linking Canada, the United States and Mexico, with unrivaled access to ports from Vancouver to Atlantic Canada to the Gulf of Mexico to Lazaro Cardenas, Mexico. It operates over 20,000 route miles and provides North American customers unparalleled rail service and network reach to key markets across the continent. It transports bulk commodities, merchandise, and intermodal freight. It offers a suite of freight transportation services, logistics solutions and supply chain expertise. It transports ethanol from production areas in the Midwest United States to key consumer markets across the Northeast United States. It serves various markets, including Canadian grain; United States grain; bulk; intermodal; automotive; forest and industrial products; transload, and energy, chemicals and plastics. Its network connects assembly and auto parts plants and distribution centers to serve the automotive industry.

Price Prediction for CP Stock by 2030

CP stock is expected to reach $120 per share by 2030.
This prediction is based on Canadian Pacific Kansas City's strong revenue growth from new deals and its strategic expansion into clean energy solutions.
The company's focus on hydrogen fuel cell engines and long-term contracts positions it well for sustained growth in the rail and energy sectors.

CP has a total of 19927 employees.