Citi analyst Ariel Rosa maintained a Buy rating on Union Pacific today and set a price target of $265.00.
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Ariel Rosa has given his Buy rating due to a combination of factors that suggest a positive outlook for Union Pacific’s stock. One key reason is the anticipation of a potential share price increase in the near term, driven by the upcoming shareholder vote on the merger proposal with Norfolk Southern Corporation and the expected submission of the merger application to the Surface Transportation Board. These events are likely to generate investor interest and could positively impact the stock’s performance.
Ariel Rosa also notes that Union Pacific is performing well on several efficiency metrics, which supports confidence in the company’s long-term earnings growth targets. Despite some macroeconomic uncertainties, such as tariffs and government shutdown risks, the company’s strong execution has been better than expected, providing a counterbalance to these challenges. While there may be other opportunities in the transportation sector, Rosa believes that Union Pacific offers a compelling risk/reward profile, justifying the Buy rating.
In another report released today, TD Cowen also reiterated a Buy rating on the stock with a $257.00 price target.