Opinions Bruce Murray
Canadian Pacific RailCP.TOBUYMar 02, 2021
Bruce MurrayStock price when the opinion was issued
As of Sep 10, 2026. Market Open.
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Likes that it's the only rail that seamlessly connects Canada, US, and Mexico. Competitors can't compete against that network. Built for the theme of nearshoring. Steady growth. About 12% earnings growth through 2028. Lots of upside to the 2023 merger -- higher margins, cashflow, and market share.
Easing of trade tensions could unlock greater freight volumes. Rising 200-day MA, share price well above. Yield is 0.86%.
Stan WongThe chart is entering short-term resistance, but has been in an uptrend since January. Expects it to break out. Own long term.
Keith Richards
Likes them for the longer term. Businesses are 100+ years old, will be around for the next 100 years. Can be hit by trade, tariffs, harvests, wildfires, labour unrest -- it's all just noise. Value-added services to customers. Much cheaper than to transport by road. Long-term growth rates are not super high, about 4-5%.
Last time he looked, a large language model couldn't replace a railroad ;)
It just broke out, above $117 after being rangebound. Something's change. There's new interest in the stock
(Analysts’ price target is $132.99)Keith Richards
All rails are suffering a recession, but is it over? Rails are cyclical to the Canadian economy. She feels were getting closer to a recession. She prefers CN to CP because of PE and dividend. CP's valuation reflects the Kansas City merger and its synergies, so higher. She owns no rails. She would buy CN on a dip.
Hit by tariff narrative, but tariffs didn't actually hit the fundamentals. Integrated nature of rails in NA means that tariffs are largely irrelevant. Could see some weakness during CUSMA negotiations, but long term it's been a mistake not to add on that weakness.
Darren SissonsThe KSU acquisition gives them an advantage with its entire North American footprint. Seeing signs that entire NA freight market is tightening. Industrial side of the economy seems to be doing well, much of it due to both fiscal and AI data centre spending in USA and Canada.
Should benefit from higher commodity prices. At inflection point of strong quarterly results. A long-term hold. Yield is 0.92%.
Bryden Teich
Good long-term business. Geographic footprint makes it a great railway. He's still actively buying.
Tim ReganIn the midst of ongoing trade discussions, near-shoring is where we're going. Only single line in NA that runs from Canada-US-Mexico -- this is a major win for efficiency. It also has east-west, which helps with Atlantic-Pacific trade.
If energy prices are going to remain elevated, rails are much more competitive than trucking. Sector broke out in January, this pullback is a great entry point. Big cash-generating business, in early stages of a structural change. Yield is 0.83%.
David BurrowsGood long-term buying opportunity right now. Tariff concerns last year, with some pressure abated from SCOTUS ruling. Consider diversifying between both CP and CNR.
Whatever comes out of CUSMA will be positive, because at least there will be an agreement. It's the unknown that creates volatility.
Network is unrivalled, especially with the KSU acquisition. Still in early stages of those cost synergies. Only network that spans Canada, US, and Mexico. Strong business, strong executional track record. Well positioned going forward. Yield is 0.80%.
(Analysts’ price target is $120.02)
CP vs CN The CP stock split isn't an issue. He prefers CP in the short term. Late CEO Hunter Harrison turned CN around and his legacy remains as CN continues to reduce costs and do very well. Harrison didn't helm CP until later, around 2012, so CP is a bit behind. CP has good exposure shipping crude, and this business should pick up in summer as more people drive and burn gas during the reopening. He prefers CP which will deliver 10-15% returns vs. CN's 5-10% in the coming year.