Stephens Raises PT on Canadian Pacific Kansas City Limited (CP); Maintains ‘Overweight’ Rating

Canadian Pacific Kansas City Limited (NYSE:CP) is included in our list of the Bill Ackman Stock Portfolio: Top 10 Stock Picks.

Stephens Raises PT on Canadian Pacific Kansas City Limited (CP); Maintains ‘Overweight’ Rating

An engineer walking through a storage yard filled with gondolas, boxcars, and hopper cars.

On July 31, 2025, Stephens increased its price target on Canadian Pacific Kansas City Limited (NYSE:CP) from $95 to $97, maintaining an ‘Overweight’ rating. This follows the company’s second-quarter results, where it reported earnings of $0.81 per share, one cent below expectations, attributed to softer revenue per carload and higher operating costs.

Yet, the analyst highlighted Canadian Pacific Kansas City Limited (NYSE:CP)’s strong fundamentals, marked by gross margins of 52.36% and 12-month revenue growth of 7.33%. As such, Stephens remains optimistic about the company’s FY25 EPS growth of 10%-14% due to its role as the only rail network linking Canada, the U.S., and Mexico.

The analyst remains bullish on Canadian Pacific Kansas City Limited (NYSE:CP), citing its strong and consistent dividend history spanning over 25 years and robust long-term outlook.

Canadian Pacific Kansas City Limited (NYSE:CP) operates a transcontinental freight railway network across Canada, the U.S., and Mexico. Bill Ackman has bought 14.80 million shares of Canadian Pacific Kansas City Limited as of Q1 2025.

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.

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Disclosure: None.