UPDATE: Bernstein Initiates Coverage on Canadian Pacific Railway at Outperform

Thursday morning Bernstein initiated coverage on Canadian Pacific Railway CP with a Outperform rating and a $200.00 price target, representing 20 percent upside potential to the current market price. In recent times the market seems to have concerns about commodity, but there is growth that shows an entry position in shares of Canadian Pacific, according to analyst David Vernon. He said "we recommend investors buy the efficiency led capital return story at CP and let the debate over longer term growth sort itself out." Vernon has high confidence in the operational improvement story, mid - single digit revenue growth, higher than market expectations for the rate of return should generate, and high expectations for future returns of capital. Canadian Pacific shares closed Wednesday's session at $167 even.