UPDATE: National Bank Financial Downgrades Canadian Pacific Railway Limited to Underperform on Valuation

National Bank Financial lowered its rating on Canadian Pacific Railway Limited

from Sector Perform to Underperform with an unchanged $84 price target. National Bank Financial commented, "While we have confidence in CP's ability to significantly improve profitability in the coming years, we believe that with the 6% move higher by the stock yesterday that it is running ahead of itself. … The economic outlook remains cloudy, particularly as it relates to key commodities. For instance, Teck, which is CP's primary customer for coal, guided yesterday for coal production volumes at the low end of its range. Other coal producers have also noted weakness in metallurgical coal demand. Potash is also a key uncertainty for CP, which will also face the negative y/y comparables of the loss of a portion of Canpotex volumes in the next few quarters." Canadian Pacific Railway Limited closed at $93.53 on Wednesday.