Canadian Pacific Kansas City's (CP) weak start to Q4 signals downside risk amid a "lack of any clear signs of macro improvement into 2026," RBC Capital Markets said Wednesday in a report.
Management reiterated its 2025 outlook, but "we do not see much buffer in that guide," the report said.
RBC lowered its earnings forecast to $4.67 a share from $4.70 in 2025, and to $5.29 from $5.44 in 2026, after Q4 results matched consensus and 2025 guidance was maintained.
The firm cut its price target on Canadian Pacific stock to 127 Canadian dollars ($90.81) from CA$129 a share, while maintaining its outperform rating.
"Our target multiple represents a premium to peers, reflecting the power" of Canadian Pacific's operating model and "compelling opportunity" tied to the Kansas City Southern integration, the report said.
Price: 73.06, Change: -0.11, Percent Change: -0.15
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