UPDATE: Citigroup Reiterates Buy Rating, Raises PT on Canadian Pacific Railway Limited

In a report published Friday, Citigroup reiterated its Buy rating on Canadian Pacific Railway Limited CP, and raised its price target from $92.00 to $100.00. Citigroup noted, “We rate shares of Canadian Pacific Buy as we have become more constructive on the potential for a meaningful operational turnaround now that the board reconstitution is set and appears amicable. We also note that CP is currently enjoying solid fundamentals, particularly on the volume and operating performance fronts. Our US$100 price target is based on a 17x multiple of 2013 EPS, in line with previous rail activist multiples. We support our target with a normalized 14.5x multiple on potential 2015 EPS of C$8.40 discounted to 2012.” Canadian Pacific Railway Limited closed on Thursday at $85.86.