TD Cowen analyst Jason Seidl has reduced the price target for Canadian Pacific Kansas City (CP) from C$116 to C$112 while keeping a Buy rating on the stock. The adjustment reflects a more balanced valuation following the company’s merger with Kansas City Southern (KCS), which has driven stronger earnings per share (EPS) growth compared to industry peers.
The firm noted that although the merger has positioned Canadian Pacific Kansas City for improved financial performance, the revised price target accounts for a more reasonable market valuation at this stage.
**Why this matters**
The KCS merger is a significant strategic move that has enhanced Canadian Pacific Kansas City’s growth prospects. Investors and analysts are closely monitoring how the combined company will perform relative to competitors, making valuation adjustments like this important for setting realistic expectations.
Source: News Source