Canadian Pacific asks US rail board to end Union Pacific merger review

Union Pacific (UP) CEO Jim Vena said he would raise rates on shippers opposing its merger with Norfolk Southern, according to a video released by UP. The Surface Transportation Board ordered UP to make the video public after CPKC and the Joint Shipper Associations raised concerns. UP denies retaliating against customers. The merger is still under review.

The Surface Transportation Board ordered Union Pacific (UNP) to release a recording of CEO Jim Vena's remarks at a shipper conference, rejecting UNP's appeal. The recording allegedly contains threats of higher rates for shippers opposing UNP's proposed $85 billion acquisition of Norfolk Southern (NSC). The board expressed concerns about transparency in the merger review. Rival CPKC (CP) sought the release, arguing the remarks chilled participation in the regulatory proceeding.

Jefferies maintained a Buy rating and $105 price target on Canadian Pacific Kansas City (CP) after Q3 results. Revenue met expectations at $4.2B, but adjusted EPS of C$1.28 missed estimates by a cent. The operating ratio rose to 61.9%. CP stock is up 20.8% YTD. Management reaffirmed 2026 EPS growth guidance and Q4 operating ratio below 60%. Analysts cite cost pressures and merger integration as key factors.

Scotiabank raised its price target for Canadian Pacific Kansas City (CPKC) to C$144, citing expected earnings growth and merger synergies. CPKC reported Q3 revenue of C$4.22B, up 15%, and EPS of C$1.28, up 16%, but its operating ratio worsened due to higher fuel prices. Scotiabank forecasts accelerated earnings growth in 2027 and highlights a new agreement with Elk Valley Resources.

StoneX reiterated a Hold rating on Canadian Pacific Kansas City (CP) after Q3 earnings missed estimates due to higher operating expenses. The company maintained full-year guidance, citing growth in grain, potash, and intermodal volumes. CP stock is up 22% YTD, trading at a P/E of 28.27. Evercore ISI lowered its price target to $96, citing higher fuel costs. CP reported Q3 revenue of $4.2B, with adjusted EPS of C$1.28.

CP (CP) reported Q3 2026 earnings, highlighting record volumes in intermodal and U.S. grains, a $600M revenue land bridge, and 6% volume growth. Operational metrics improved, including train speed and fuel efficiency, while safety incidents increased. The company announced new labor agreements and investments in locomotives and technology. Freight revenues and RTMs rose 15% and 6%, respectively, with a 9% increase in cents per RTM.