UPDATE: National Bank Financial Upgrades Canadian Pacific Railway Limited to Sector Perform, Raises PT on Increased Optimism

In a report published Thursday, National Bank Financial analyst Cameron Doerksen upgraded the rating on

from Underperform to Sector Perform, and raised the price target from $120.00 to $126.00. In the report, National Bank Financial noted, “We are upgrading CP shares to Sector Perform from Underperform previously. While we are somewhat cautious on the near-term volume outlook and the stock remains relatively expensive, we are increasingly optimistic that the company will achieve its long-term targets ahead of originally scheduled. Our new target is $126.00, up from $120.00 previously. With the dramatic reduction in headcount and impressive operating improvements so far this year, our updated forecast sees CP's O/R at 66.1% in 2014 and our rough forecast for 2015 sees it below the targeted 65% in 2015 (~64%). This would be one year ahead of the originally targeted timeline.” Canadian Pacific Railway Limited closed on Wednesday at $123.58.