UPDATE: Raymond James Upgrades Canadian Pacific Railway Limited to Outperform on Solid 1Q13 Results

In a report published Thursday, Raymond James analyst Steve Hansen upgraded the rating on Canadian Pacific Railway Limited

from Market Perform to Outperform, and raised the price target from C$130.00 to C$145.00. In the report, Hansen noted, “We are increasing our target to $145.00 (vs. $130.00 previously) and raising our rating to Outperform based upon our view that: (i) CP's new management team is effecting wholesale change on the railroad's cost structure and service levels; (ii) we remain in the formative years of a long-term, sweeping transformation; (iii) CP boasts tremendous torque to the crude-by-rail business model—a theme we are highly constructive on; (iv) CP's rapidly descending cost structure will not only augment its competitive position, but also give rise to new growth opportunities and strong FCF; and, (v) we are hard pressed to find earnings growth of this quality/magnitude anywhere within our Industrial coverage universe.” Canadian Pacific Railway Limited closed on Wednesday at C$124.73.