Canadian Pacific Kansas City price target raised to C$137 from C$133 at RBC Capital

RBC Capital raised the firm’s price target on Canadian Pacific Kansas City to C$137 from C$133 and keeps an Outperform rating on the shares as part of a broader research note previewing Q3 results for Class 1 Railroads. The firm is watching closely the macro backdrop given cautious commentary from FedEx (FDX) and CN that the industrial outlook is worse vs. prior expectations, though it is also adjusting its models with rolled forward valuation year to 2026, the analyst tells investors in a research note. For Canadian Pacific, RBC remains positive on its “best-in-class” operations ahead of a transformative Kansas City Limited acquisition, which should set the stage for significant growth and a material upward valuation re-rate, the firm added.