CPKC's Growth Prospects Among Best In North American Rails, But High Valuation Premium Calls For Caution: Analyst
Portfolio Pulse from Shivani Kumaresan
Credit Suisse analyst Ariel Rosa has reiterated a Neutral rating on Canadian Pacific Kansas City Ltd (CPKC) and raised the price target from $81 to $87. CPKC expects to achieve mid-single-digit EPS growth in 2023 and double-digit annual EPS growth over 2024-28. However, the analyst warns that CPKC's high valuation premium and the need for significant operating margin improvement over the next 3 years call for caution.
July 05, 2023 | 6:16 pm
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NEUTRAL IMPACT
CPKC's strong growth prospects are offset by a high valuation premium and the need for significant margin improvement. The price target has been raised from $81 to $87.
The analyst's neutral rating and raised price target indicate a positive outlook for CPKC. However, the high valuation premium and the need for significant margin improvement over the next 3 years could limit the stock's upside potential in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100