Analyst Ken Hoexter from Bank of America Securities reiterated a Buy rating on Union Pacific (UNP – Research Report) and decreased the price target to $256.00 from $276.00.
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Ken Hoexter has given his Buy rating due to a combination of factors including Union Pacific’s strong operational performance and promising growth outlook. Despite a slight earnings miss in the first quarter of 2025, the company demonstrated robust volume growth and achieved the best core pricing gains in a decade. These positive aspects were somewhat offset by lower fuel surcharges and a challenging mix of international intermodal volumes, but the overall operational efficiency remained commendable.
Hoexter also noted that Union Pacific’s long-term growth prospects remain intact, with a target for high-single to low double-digit EPS growth over the next three years. Although there are macroeconomic uncertainties, such as tariff impacts, the company’s strategic initiatives and productivity improvements are expected to support its growth trajectory. Consequently, Hoexter maintains a Buy rating, albeit with a slightly reduced price objective, reflecting the current economic backdrop.
In another report released today, Barclays also maintained a Buy rating on the stock with a $260.00 price target.
UNP’s price has also changed slightly for the past six months – from $230.750 to $215.450, which is a -6.63% drop .