BMO Capital Reiterates Buy Rating on Canadian Pacific Kansas City (CP) Stock

Canadian Pacific Kansas City Limited (NYSE:CP) is one of the Best Stocks to Buy According to Brasada Capital Management. On July 14, analyst Fadi Chamoun from BMO Capital reiterated a “Buy” rating on the company’s stock and has a C$129.00 price target. The analyst’s rating is backed by a combination of factors demonstrating the company’s strong growth prospects and operational excellence. The merger of CP and Kansas City Southern resulted in a significant addressable market, offering opportunities for strong organic volume growth over the upcoming decade. This expansion is aided by Canadian Pacific Kansas City Limited (NYSE:CP)’s extensive land bank, enhancing its ability to address customer supply chain needs.

BMO Capital Reiterates Buy Rating on Canadian Pacific Kansas City (CP) Stock

A freight train making its way through a majestic mountain range, snow-capped peaks in the distance.

Canadian Pacific Kansas City Limited (NYSE:CP)’s unique supply chain solutions and best-in-class operational execution place it as a leading growth story in the broader transportation sector, added the firm analyst. Furthermore, it was added that Canadian Pacific Kansas City Limited (NYSE:CP)’s robust FCF conversion and limited capital expenditure pressures hint that it will continue to deliver strong financial performance, making valuation attractive when talking about growth and cash flow capabilities.

While we acknowledge the potential of CP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CP and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now

Disclosure: None. This article is originally published at Insider Monkey.