11:31 AM EDT, 10/24/2024 (MT Newswires) -- With few companies hiking volume guidance in today's environment, CPKC's move to raise volume expectations to mid-single digits shows the company's unique setup as it executes on the integration upside from the KCS deal, RBC said.

RBC pointed to a 500bp sequential improvement in operating margin as it rebounds off the labour-related and derailment challenges of the third quarter. "We really like the momentum building in Q4 and the setup for CPKC into 2025."

Lowering target to $134, from $137. RBC has slightly moderated growth expectation for CPKC (as it has done for all transports to date) to factor in a delay in an economic recovery.

Maintain Outperform.

"We reiterate that CP is our favourite name in the railroad space."

Price: 107.96, Change: -1.11, Percent Change: -1.02