The Globe and Mail reports in its Wednesday, June 5, edition that RBC Dominion Securities analyst Walter Spracklin downgraded Canadian Pacific Railway ($131.76), saying activist investor Bill Ackman's decision to sell down his interest indicated that the stock offers limited upside. The Globe's Sonali Verma and Ian McGugan write in the Eye On Equities column that Mr. Spracklin says, "We are downgrading CP shares as the implied total return to our 12-month target of $104 is [negative] 22 per cent." Monday's decision should be "a catalyst for investors to refocus on the fundamentals, which we consider to be: 21 per cent annual earnings-per-share growth to 2016, driven by an improved operating ratio (from 77.2 per cent in 2012 to 66.6 per cent in 2016) and revenue growth of 6.1 per cent annually out to 2016." He says: "We believe the company has made significant and important strides in improving its operations, and we believe there is still more to come. However, a share price that builds in realistic expectations for this improvement in our view would be below $110." Mr. Spracklin cut his rating on the stock to "underperform" from "sector perform" and has a price target of $104.