Analyst cites expanding ISM readings and record grain shipments as drivers for the revised outlook on CP shares.
Susquehanna raised its price target on Canadian Pacific Kansas City (NYSE:CP) to $104 from $95, maintaining a Positive rating. The firm highlighted rail volumes exceeding expectations, with ISM data expanding for five consecutive months and no signs of industrial demand weakness from higher fuel costs.
CPKC set a new May record by transporting 2.9 million metric tonnes of Canadian grain and grain products, surpassing the prior May 2020 high. The company also broke its May carload record with 30,324 carloads. Year-to-date, CPKC has moved over 25.3 million metric tonnes of grain in the 2025-2026 crop year.
Earlier, CPKC reported record April grain shipments of 2.9M metric tonnes and 30,381 carloads, alongside a Q1 total of 7.2 million metric tonnes, topping the 2021 first-quarter record.