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    Canadian Pacific Kansas City (TSX:CP) Labor Deal Puts Fair Value Back In Focus

    Simply Wall St·10/02/2026 22:22:58
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    What the new labour deal means for Canadian Pacific Kansas City

    Canadian Pacific Kansas City (TSX:CP) just announced a tentative five year collective agreement with the Brotherhood of Locomotive Engineers and Trainmen. This eases labour uncertainty on key Midwestern routes and lowers the risk of disruption for freight customers.

    The proposed contract covers roughly 250 train and engine employees on the southern portion of the Dakota, Minnesota and Eastern property, including operations in Minnesota, Iowa, Illinois and Missouri. Investors watching operational reliability across Canadian Pacific Kansas City’s 20,000 mile rail network now have a clearer line of sight on staffing conditions in this region, subject to union ratification of the deal.

    Investors have rewarded Canadian Pacific Kansas City for this kind of operational clarity, with the share price up 19.73% year to date to CA$122.51 and a 5 year total shareholder return of 47.70%, indicating momentum that has built over a longer horizon, even as the 1 year total shareholder return of 14.14% reflects more measured recent gains.

    Scan rail and infrastructure peers that may also benefit from steadier operations and strong funding with our curated list of list of solid balance sheet and fundamentals (7 results)

    Canadian Pacific Kansas City has already moved higher on labour clarity and fresh bond funding. The key question now is whether that recent run justifies buying today or waiting for a cheaper entry on any pullback.

    Most Popular Narrative: 12% Undervalued

    On the most followed view of Canadian Pacific Kansas City, a fair value of about CA$139.53 sits above the last close at CA$122.51. This frames recent gains as only part of the story rather than the end of the move.

    Expansion of the north south three country network into underpenetrated Mexico and U.S. South corridors for grain, potash, LPGs and refined fuels positions CPKC to capture share from trucking and short sea, supporting durable volume growth and higher revenue over many years.

    See why 9 investors see Canadian Pacific Kansas City as 12% undervalued.

    Result: Fair Value of CA$139.53 (UNDERVALUED)

    Still, prolonged economic softness across North America or adverse trade policy shifts on key cross border routes could quickly challenge the upbeat Canadian Pacific Kansas City narrative.

    Find out about the key risks to this Canadian Pacific Kansas City narrative.

    Next Steps

    Optimistic about Canadian Pacific Kansas City or more cautious after the latest moves and fair value estimates? Act quickly, review the full mix of data, and weigh both sides by checking the 2 key rewards and 1 important warning sign.

    Looking for more investment ideas beyond Canadian Pacific Kansas City?

    If the Canadian Pacific Kansas City story has sharpened your focus, now is the time to widen your opportunity set with a few targeted screens.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.