In a report released yesterday, Ken Hoexter from Bank of America Securities reiterated a Buy rating on Union Pacific (UNP – Research Report), with a price target of $280.00.
Ken Hoexter has given his Buy rating due to a combination of factors including Union Pacific’s strong performance in the first quarter and confidence in its operational momentum under CEO Jim Vena’s leadership. Despite a soft macroeconomic environment and a decline in coal shipments, Union Pacific managed to exceed revenue targets and maintain cost controls. Yield improvements and rigorous adherence to a precision scheduled rail operating model have contributed to a favorable operating ratio, showcasing the company’s ability to offset inflationary pressures, particularly those stemming from higher union costs.
Furthermore, Hoexter’s optimism is reflected in the raised earnings per share (EPS) estimates and an increased price objective (PO) to $280, signaling his belief in the company’s value proposition. The operational improvements under the new CEO have led to better-than-expected service metrics, which include increases in car miles per day, locomotive productivity, and train length. These advancements, coupled with an anticipated sustained improvement in the second half of the year and into 2025, underpin Hoexter’s rationale for rating Union Pacific as a Buy and affirming its position as a top transport pick.
In another report released today, Barclays also maintained a Buy rating on the stock with a $290.00 price target.
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Union Pacific (UNP) Company Description:
Founded in 1969, Nebraska-based Union Pacific Corp., through its principal subsidiary, Union Pacific Railroad Company, engages in railroad and freight transportation services. It offers transportation services for diversified business including agricultural products, food and beverage products, petroleum and gases, chemicals, coal, industrial products, intermodal and automotive.
Read More on UNP:
- North American rail traffic up 1.3% for the week ending April 20
- Union Pacific named short-term buy idea at Deutsche Bank
- North American rail traffic up 1.4% for the week ending April 13
- Union Pacific put volume heavy and directionally bearish
- Union Pacific price target raised to $248 from $231 at Stifel
