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.

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 as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term 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.