UPDATE: Canaccord Genuity Downgrades Canadian Pacific Railway to Hold on Uncertainty

Canaccord Genuity reduces its rating on Canadian Pacific Railway

from Buy to Hold and reduces it spruce target from C$92 to C$80. Canaccord Genuity notes, "We have cut our Q2/12 CP forecast to reflect the nine-day strike in Q2/12, which shut the Canadian part of the railway during that period. We adjusted our volume assumptions per the strike impact and incorporated strike-related increased costs. We also added $14 million of proxy battle related costs. These negative forecast factors are partially offset by lower costs related to lower volumes and reduced compensation to striking employees. The net impact of the changes is a $0.25 decrease in our Q2/12E EPS. The remainder of our forecast is relatively unchanged." CP closed at $71.44 on Tuesday.