TSE:CP

Canadian Pacific Rail (CP.TO)

124.52
+1.21 (0.98%)
as of Jul 31, 2026, 8:00:00 pm Market Open.
640 watching
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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
Unspecified
It is modestly expensive right now in the face of a slowing economy. There are hopes for big grain shipments next year. Also there could be more rail shipment of oil if problems persist with pipelines.
PARTIAL SELL
Valuations are highly stretched heading into the headwinds of 2023. The USD has declined a lot recently, which benefits CP, but we haven't ended interest rate rate tightening yet. Be careful with CP now. Don't add, but trim your position.
TOP PICK
Very bullish chart on the state of CP Rail. Canadian bellwether on the state of the economy. Good time to buy shares.
BUY
Very good chart and is recommending to clients. Seeing the chart make new highs. One of the strongest sectors in Canada. Technical work is suggesting new highs.
WAIT
Buy now or wait? Historically, rails sell off during recessions, so he'd wait.
BUY ON WEAKNESS
Is a strong business, but waiting for shares to fall before investing. Commodity focused in terms of freight carried. Will be a good long term business, but shares need to fall. Expecting shares to fall more. Very low dividend yield.
BUY
If economic slowdown, why not reflected in stock price? Slowdown is being reflected, but not in the Canadian rails. CNR and CP are up YTD, whereas US rails are down mid-teens or worse. Canadian industrial sandbox doesn't have the breadth and diversity of the US. US investors are finding better ideas elsewhere in their own sandbox. CP is digesting its acquisition. Booking record profits, will probably slow in 2023. Typically performs better than market averages in bear markets.
HOLD
Holds CN Rail as well. CP is in the middle of a beneficial merger. Business is booming and EPS is growing so it is worth a premium.
BUY
Good model with excellent assets (not making railways anymore). Cheap form of shipping products. Strong business model with recent M&A.
BUY ON WEAKNESS
CP vs. CNR Not supposed to invest in transports on the precipice of a downturn. They've come down, but not that much. Wouldn't buy CNR based on valuation relative to growth rate. CP's acquisition is an amazing catalyst and how that will pay off. On price to growth, CP is compelling, but wait for selling pressure.
BUY
recession proof? The KSU purchase is under review. If it is approved, it will benefit CP. Rails are more defensive within transportation (you can't easily build rails). Also, rails have been able to pass price increases through. She owns CN and CP.
WAIT
Run extremely well. Quality. Valuation is sky-high, well above long-term averages.
BUY
He owns both Canadian rails. CP is completing Kansas City Southern deal. Likes it for extending their network to Mexico and the Gulf. Good synergies. CN has better assets, but CP is operating their network better. This may have changed in the last quarter, though. Good to own either.
HOLD
Hold in a recession? Economically sensitive. Pickup in activity over the last few months has been positive. This can be unstable in the current environment. Good to hold on to as long as you have a long-term view. Not a good hold for under a year. He'd need to see a discount of 10-20% before adding.
BUY
CP vs. CNR Rails look good here with the pullback. When the economy gets going again, they'll both do OK. Both have lots of room to go up.
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