BMO Capital analyst Fadi Chamoun resumed coverage of Canadian Pacific Kansas City with an Outperform rating and C$130 price target following the completed merger of the two railroads last week. The combination of CP and KCS networks significantly expands the addressable freight market for the merged entity and catalyzes a period of strong organic volume growth that should extend well into the coming decade, the analyst tells investors in a research note. The firm adds that while no integration is without risks, the merger of the two companies consists of putting two complementary networks together without overlaps and/or redundancies in physical assets.
Published first on TheFly
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