5 September 2008
CP Change of Guard Reflects Change of Focus
The appointment of Kathryn McQuade as Canadian Pacific Railway
Co.'s new CFO, reflects a change in focus at Canada's second largest railway, says Blackmont analyst Avi Dalfen.
CP said Thursday that Mike Lambert, executive vice president and CFO, has been replaced by Ms. McQuade effective immediately. The stock
fell 4 percent following the announcement and continues to decline in Friday morning trading as this week's ongoing market sell off
continues.
"The change is related to a different focus by CP management as Mr. Lambert was hired from outside the industry, and had a history
of managing rapid growth, when CP's focus was on growth," Mr. Dalfen said in a note to clients.
"Ms. McQuade, who remains the No. 2 ranked person in CP management, and has extensive financial experience with another railroad,
is becoming CFO while CP's focus is on improving efficiencies."
Mr. Dalfen also told clients that he reduced his target price on CP shares from $69 to $68 to reflect "a compression in valuation
multiples." He maintained his "hold" recommendation.
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