UPDATE: Citigroup Upgrades Canadian Pacific Railway Limited to Buy; Turnaround Beginning

Citigroup raises its rating on Canadian Pacific Railway Limited

from Neutral to Buy and increases its price target on shares from $80 to $90. Citigroup says, "We are raising our rating to Buy from Neutral and increasing our price target to US$90 from US$80, as we believe Pershing's proxy win coupled with the resignation of former CEO Fred Green begins the new board's term on a positive note and should lead to the beginnings of a constructive turnaround for Canadian Pacific. As we expected, CP shares have lagged Canadian National since it pre-announced positive 1Q results in April, as investors lacked a clear catalyst until now. That said, with the vote complete, volumes up 7% QTD, the potential for significant EPS growth through 2015, and news flow likely to support the turn around, we believe a reacceleration of its shares is likely." CP closed at $75.07 on Thursday.