In a report released today, Ken Hoexter from Bank of America Securities reiterated a Buy rating on Canadian Pacific Kansas City (CP – Research Report), with a price target of $86.00.
Ken Hoexter has given his Buy rating due to a combination of factors including Canadian Pacific Kansas City’s ability to rebound from weather-related challenges and its potential for growth. Despite volumes trending below targets due to severe winter weather, the company has shown resilience with a rebound in March, particularly in automotive and coal sectors.
Furthermore, Ken Hoexter notes that while winter conditions have added pressure on margins, Canadian Pacific is expected to benefit from solid core pricing and favorable foreign exchange conditions, which should offset some of the operational challenges. The company’s long-term growth prospects, reflected in an anticipated mid- to upper-teens EPS growth CAGR, support the Buy rating, even though the price objective has been slightly lowered to account for currency impacts.
Hoexter covers the Industrials sector, focusing on stocks such as Westinghouse Air Brake Technologies, XPO, and Canadian National Railway. According to TipRanks, Hoexter has an average return of 2.6% and a 47.28% success rate on recommended stocks.
In another report released yesterday, CIBC also maintained a Buy rating on the stock with a C$124.00 price target.