TSE:CP

Canadian Pacific Rail (CP.TO)

124.52
+1.21 (0.98%)
as of Jul 31, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJul 31, 2026, 12:00 am

This summary was created by AI, based on 27 opinions in the last 12 months.

Experts generally view Canadian Pacific Rail (CP-T) as a solid long-term investment, though opinions on timing for entry vary. Many see potential growth following the Kansas City Southern (KSU) acquisition, which strengthens CP's network across Canada, the US, and Mexico. However, concerns about cyclical recession and tariff impacts from trade negotiations linger, creating uncertainty around short-term performance. Analysts' price targets suggest some upside potential, with estimates around $120 to $132. Overall, CP's robust positioning in the rail industry and operational efficiencies are likely to benefit it long-term, although some analysts prefer Canadian National Railway (CNR) based on valuation metrics and dividend yields. Investors are encouraged to consider the market environment and potential pullbacks before making any purchase decisions.

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Consensus
Buy
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Valuation
Fair Value
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Similar
CNR,CP
COMMENT
Company has held its value fairly well in the market selloff. Supply chain within North America becoming very important with global tensions. Nature of business creates a stable/reliable business. History of company has endowed company with excellent assets (legacy railways).
BUY
CP vs. CNR For growth, CP gets the nod. Acquisition will build out their route and help growth. Valuations are comparable, around 20x earnings.
BUY
Company has huge pricing power and diversified business. Well positioned company going into the future. Recent acquisition will allow exposure all the way to Mexico. Would recommend buying as a long term hold for investors.
BUY
Best in class operator. Railway business under pressure given supply chain concerns, however not a major worry. Long term - company is lifeblood of Canadian economy. Continues to be one of largest holdings in portfolio. Well managed company that expects to continue to preform well.
HOLD
Great business, better than trucking. Good growth with KSU acquisition, but the risk is in the execution. Good pricing power. He owns CNR.
BUY
Allan Tong’s Discover Picks CPR split 5-for-1 on May 14, 2021. Since then, shares have edged up only 2.6%, but have popped more than $10 since the Russian war began on February 24. CP trades at a 23.82x PE and pays a 0.78% dividend. Currently, CP is trading right below $100 and is making new 52-week highs. It has jumped $10 since the war began. Given all the market volatility, wait for CP to dip before adding or entering. At the same time, don't expect explosive growth here. This is a long-term story. Read 3 Stock Splits to Watch for our full analysis.
HOLD
Railroads are doing excellently. Economy in NA is very strong. Excellent businesses. He'd want to see how the leverage ratio plays out with the KSU acquisition. If the deal closes, CP would be the growth story, and it might be the better one. He owns CNR instead.
BUY ON WEAKNESS
Debt is manageable. Acquisition of KSU is transformative, as CP will be the only Class 1 railroad that runs from Canada through the US to Mexico. Lots of opportunities. Likely to see earnings upgrades over the next 2-3 years. Rough start to the year, but he'd add on a meaningful pullback.
BUY
Company is well positioned going forward. Current share price is presenting good buying opportunity. Expecting strong financial results in 2022. Tremendous upside potential in share price.
BUY
Believes exposure to Canadian railroads is a good idea. Recent supply chain constraints shows value of railways. Will look to own more shares in company.
BUY
A core holding. Still well priced with a good growth rate of 12%. Being ignored so could add a bit.
BUY ON WEAKNESS
Canadians blessed with railroads that preform well. Great company and high quality business. Would recommend looking at stock to buy. High valuation, however good business model.
BUY
Acquisition of KSU affect dividend? Dividend payout is low. Dividend has grown 17% a year for 5 years. Earnings will grow close to 20% in 2023. Likes rails and transports. He'd be a buyer.
COMMENT
The question was on railroads. Likes Canadian railroads. Operating costs are down now. He prefers CP since it did a great job of acquiring and running Kansas City Southern. This gives them a great network of north/south as well as East/West corridors.
DON'T BUY
See also his CNR comments. He prefers CN based on PE. CP pays a better dividend though, but CP will integrate with KSU and any integration carries risks. Expect margin pressure in the first half of 2022 during inflation as costs rise.
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