UBS Upgrades Union Pacific to Buy Amid Strong Volume Growth and Fuel Cost Dynamics
UBS upgraded Union Pacific (UNP) to a buy rating, citing strong volume growth expectations for the year. The brokerage also highlighted potential benefits from high fuel costs favoring rail over truck transportation, which could drive demand for railroad services like those offered by Union Pacific. Analysts led by Thomas Wadewitz noted that surging energy prices are reshaping the logistics landscape in favor of railroads and against some truckers. Additionally, a possible merger with Norfolk Southern (NSC) was mentioned as a potential catalyst offering an 'attractive upside' for investors.
