Union Pacific Stock Rises After UBS Upgrades Rating to Buy
Union Pacific (UNP) saw its stock rally after investment bank UBS upgraded the company's rating from Neutral to Buy and raised its price target. The upgrade is based on expectations of stronger cargo growth, with a projected volume increase of 3.5% in 2027 due to strong performance across key customer markets. UBS also forecasts higher-than-consensus earnings per share for both 2026 and 2027. Union Pacific's Q2 results were robust, exceeding expectations on adjusted EPS and revenue growth driven by freight volume increases and pricing strength. CEO Jim Vena highlighted continued efficiency gains and record operational performance as reasons behind the raised full-year guidance to high single-digit earnings growth. Despite a recent dip in stock price following the upgrade announcement, UBS's $339 target suggests potential upside if forecasts are met. The company is also navigating its proposed merger with Norfolk Southern, which has entered formal review by regulators. Union Pacific claims it has secured key agreements and support for this deal.
Topics: earnings guidance rail industry UBS upgrade Union Pacific