Q: CP hasn’t been an exciting company, based on its recent share price. Can you comment on its potential share price movement over the next three year period? Thank you.
5i Research Answer:
CP is quite sensitive to economic conditions. With tariff uncertainty and a less-than-stellar economy, it has lagged somewhat. But, interest rates are heading lower in Canada and the US, and tariffs should be less of a concern going forward. Companies seem to be adapting. This is not CP's first slowdown. It is expected to still grow in the 10%+ range for the next several years. We would expect a similar move in the stock, assuming normal market conditions.