Stock Price & Analysis

Based on the provided data and recent market developments, here's a concise analysis of CP stock:

Technical Analysis

The stock is currently showing mixed technical signals:

• RSI-14 at 49.40 indicates neutral momentum
• MACD line (0.44) above signal line (0.59) but with negative histogram (-0.16)
• Trading between Fibonacci support at $76.92 and resistance at $79.15

Recent Developments

• Loop Capital recently downgraded CP to Sell from Buy with a significantly lower price target of C$70
• However, Evercore ISI maintains a Buy rating with a $92 price target
• Stifel Nicolaus holds a neutral stance with an $85 price target

Fundamental Outlook

The company faces some headwinds:

• Recent tariff implementation affecting cross-border trade between US-Canada could impact operations
• However, CP's unique position as a cross-continental railroad operator provides competitive advantages

Recommendation

SELL. The stock appears vulnerable at current levels due to:

1. Technical indicators showing weakness
2. Recent significant analyst downgrade
3. New tariff headwinds that could pressure margins
4. Trading near resistance levels with limited upside potential

Based on the provided data and market analysis, here is the price prediction for Canadian Pacific Kansas City (CP) stock in 2025:

Technical Analysis

The stock is currently showing mixed technical signals with:

• RSI(14) at 49.40 indicating neutral momentum
• MACD showing slight bullish divergence (MACD: 0.44, Signal: 0.59)
• Trading between Bollinger Bands (BBM: 78.34, BBU: 82.08, BBL: 74.61) suggesting consolidation

Fundamental Drivers

The company's fundamentals support moderate growth potential:

• Revenue projected to grow to 14.55B CAD in FY2024, up from 12.56B in FY2023
• Management guidance of 12-18% adjusted EPS growth for FY2025
• Strong operating cash flow outlook enabling continued strategic investments

Price Target Analysis

Based on analyst consensus and technical indicators:

• Stifel Nicolaus maintains $85 price target
• Key resistance levels at $82.08 (Upper BB) and $85.00
• Support levels at $74.61 (Lower BB) and $72.00

2025 Price Prediction: CP stock is expected to trade in the range of $85-90 by end of 2025, representing ~15-20% upside from current levels. This projection is supported by:

1. Strong operational execution and market share gains
2. Continued synergy realization from KCS merger
3. Favorable industry fundamentals and pricing power

The S1 support level for CP Stock is $76.6 ,The R1 resistant level for CP Stock is $79.12.

As of the end of day on 2025-02-25, the price of CP Stock was $77.49.

The target price for CP Stock according to analyst rating is 91.03, with the highest price target at 130.00 and the lowest at 49.35. Analysts have a Moderate Buy rating on CP Stock overall.

The market cap of CP is $72.3B.

Based on the provided data and recent market activity, here's a comprehensive analysis of CP's valuation:

Technical Analysis

The stock is currently showing mixed technical signals:

• RSI-14 at 49.40 indicates neutral momentum
• Trading near its 20-day SMA of $78.34, suggesting sideways consolidation
• Bollinger Band Position (BBP) at 0.38 indicates moderate upside potential
• MACD line (0.44) above signal line (0.59), but showing weakening momentum

Valuation Metrics

• Current P/E: Trading at elevated levels historically
• EV/EBITDA: 19.73x (2023), improved from 27.04x (2022)
• P/B: 2.36x, slightly below 2022's 2.42x
• P/S: 7.80x, decreased from 10.68x in 2022

Financial Performance

• Revenue grew significantly from $8.81B (2022) to $12.56B (2023)
• Gross margin remained stable at 71.58% (2023) vs 71.49% (2022)
• Current ratio declined to 0.53 (2023) from 0.59 (2022)
• Debt-to-equity increased slightly to 53.04% from 50.53%

Recent Analyst Views

• Stifel Nicolaus maintains Hold rating with $85 price target
• Evercore ISI reiterates Buy rating with $92 price target
• Stephens & Co maintains Overweight rating with $92 target

Conclusion: CP appears moderately overvalued at current levels considering:

1. Trading above key moving averages
2. High P/S ratio despite recent improvements
3. Increased leverage ratios
4. Mixed analyst sentiment with price targets suggesting limited upside

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.

Based on the historical data and current market analysis, here's a concise 3-sentence price prediction for Canadian Pacific (CP) stock by 2030:

Canadian Pacific stock is projected to reach approximately $125-130 per share by 2030, driven by continued North American rail network integration benefits and steady growth in freight volumes. This forecast represents roughly a 45-50% increase from current levels around $86, implying an average annual growth rate of 5-6%. The projection assumes successful execution of the company's operational efficiency initiatives and stable economic conditions, though actual performance could vary based on macroeconomic factors and industry dynamics.

CP has a total of 19927 employees.