UPDATE: Canaccord Genuity Downgrades Canadian Pacific Railway Limited to Sell on Risk/Reward

Canaccord Genuity downgraded Canadian Pacific Railway Limited

from Hold to Sell and raised the price target from $95.00 to $99.00. Canaccord Genuity noted, "CP's share price is up 60% since the end of 2011, we believe almost certainly due to investor expectations that new CEO, Hunter Harrison, will drive substantial EPS growth over the next four years from margin improvement. … We are projecting nearly $10.00 in EPS in 2016 on a 66% OR, which we estimate will produce a $138 target. This suggests CP share price appreciation potential over the mid-term, but the implied 6.8% annual return over the next three years is modestly less than the projected 8.6% annual return to our three-year CN Rail target, and we believe there is materially less risk to our CN three-year target than our CP three-year target." Canadian Pacific Railway Limited closed at $113.07 on Thursday.