Canadian Pacific Kansas City upgraded to Outperform at Wolfe Research

As previously reported, Wolfe Research upgraded Canadian Pacific Kansas City (CP) to Outperform from Peer Perform with an $86 price target The stock is basically flat over the past three and a half years, slightly lagging the other rails and materially underperforming the S&P 500, notes the analyst. However, its prior large valuation premium has compressed materially and the firm expects EPS growth to start accelerating the next couple of years, so it sees “a more favorable setup for the stock,” even with continued near-term uncertainty around potential Canadian and Mexican tariffs, the analyst tells investors.