NEW YORK (TheStreet) --  Canadian Pacific Railway's  (CP)  stock price target was lowered to $160 from $163 at Credit Suisse after the railroad operator warned yesterday that second-quarter earnings will likely fall short of analysts' estimates.

The company expects adjusted per-share earnings for the quarter to be about $2 vs. the firm's estimate of $2.55 and the consensus of $2.45, according to Credit Suisse. Canadian Pacific anticipates a 12% drop in revenue year-over-year, which is more than the firm's initial estimate of a 9% decline.

Management nonetheless expects to achieve double-digit growth in earnings per share for the full year, the firm pointed out.

"[A]t this point we think achieving the guidance appears optimistic given what feels like chronic uncertainty in the rail volume environment; and to the extent this view proves to be correct, we believe it leaves a potentially negative catalyst in the stock that could otherwise have been cleared," Credit Suisse said.

The stock is rebounding 2.53% to $126.97 in early-morning trading on Wednesday after closing down 2.42% on Tuesday. 

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B-.

Canadian Pacific's strengths such as its increase in net income, notable return on equity, expanding profit margins and growth in earnings per share. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

You can view the full analysis from the report here: CP

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.