Analyst Jason Seidl of TD Cowen reiterated a Buy rating on Union Pacific, with a price target of $255.00.
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Jason Seidl has given his Buy rating due to a combination of factors reflecting both steady execution and identifiable growth drivers. Union Pacific delivered fourth-quarter earnings in line with market expectations and slightly ahead of his own forecast, demonstrating solid operational control with operating ratios matching projections. While overall freight volumes declined on tough comparisons, the company was able to largely offset this with favorable pricing and mix, underscoring its pricing power and disciplined yield management. Seidl also sees upside from coal, where higher natural gas prices and increased winter-related demand are supporting strong carload growth, and he expects grain volumes to benefit from export strength and new market opportunities in 2026.
Jason Seidl’s rating also incorporates the regulatory outlook and strategic positioning around the Surface Transportation Board (STB) process. Management’s plan to refile its application in the coming weeks, while still targeting a first-half 2027 timeline, gives him confidence that the company is proactively managing regulatory risk, even if the review may realistically extend beyond the formal 13‑month window. He notes that although core demand trends across the rail industry look subdued and intermodal growth appears muted in the near term, Union Pacific’s diversified freight mix and potential tailwinds from coal and grain support a constructive medium-term earnings profile. Additionally, the company’s willingness to engage on reciprocal switching—while emphasizing careful implementation to avoid customer harm—signals a pragmatic approach to evolving competitive and regulatory dynamics, reinforcing his positive long-term stance on the stock.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $266.00 price target.