Analyst Ken Hoexter of Bank of America Securities reiterated a Buy rating on Union Pacific (UNP – Research Report), reducing the price target to $276.00.
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Ken Hoexter has given his Buy rating due to a combination of factors including Union Pacific’s strong performance in intermodal volumes, which have significantly exceeded expectations, driven by robust activity at West Coast ports and an increase in domestic volumes. Additionally, the company has seen improvements in coal and renewables, as well as metals and minerals volumes, which have surpassed previous estimates.
Despite some declines in higher yielding carload categories, Union Pacific’s operational efficiency has improved, as evidenced by better freight car velocity and reduced car dwell times. These operational enhancements, coupled with a strategic share repurchase program and a favorable valuation multiple, support the Buy rating. The company’s ability to maintain structural operational momentum under CEO Jim Vena further reinforces confidence in its future performance.
In another report released on March 11, TD Cowen also maintained a Buy rating on the stock with a $258.00 price target.