Added to YB: 2024-05-28
Pitch date: 2024-05-24
CP [bullish]
Canadian Pacific Kansas City Limited
-4.13%
current return
Author Info
Company Info
Canadian Pacific Kansas City Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada, the United States, and Mexico.
Market Cap
CAD 89.3B
Pitch Price
CAD 107.82
Price Target
120.00 (+16%)
Dividend
0.92%
EV/EBITDA
13.92
P/E
21.50
EV/Sales
7.57
Sector
Ground Transportation
Category
value
Canadian Pacific Kansas City - Tesis
Canadian Pacific Kansas City (CP) - Price target: $154 CP is a quality railroad co w/ 75% checklist score. Estimates $18.4B rev, 30% CFO/rev ($5.5B), $3B capex by '28. DCF @ 10% WACC yields $152-154 PT (8% IRR @ $105). 20x P/E on $7-8 EPS also ~$140-160 PT. Merger synergies & 3%+ terminal growth from near-shoring tailwind. Only railroad connecting Canada/US/Mexico. Solid interest coverage but 30%+ net income drop would mean losses. Watch locomotive productivity post-merger. Risks: recession volume hit, US/MEX border issues.
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