BMO Capital analyst Fadi Chamoun reiterated a Buy rating on Union Pacific yesterday and set a price target of $277.00.
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Fadi Chamoun has given his Buy rating due to a combination of factors that highlight Union Pacific’s strong financial performance and strategic opportunities. The company reported impressive results in the second quarter of 2025, surpassing expectations with a notable increase in earnings per share and operating income. This robust performance was driven by improved operational efficiencies, such as enhanced labor productivity and increased car velocity, which contributed to the company’s ability to maintain its positive outlook for 2025.
Additionally, Union Pacific’s potential business combination with Norfolk Southern presents a significant opportunity for growth. Although the merger path is uncertain and involves regulatory challenges, successful execution could lead to substantial earnings accretion and transform the company’s financial framework in the medium to long term. The potential synergies from the merger, along with Union Pacific’s ability to lower operating expenses and improve margins, support a favorable long-term growth trajectory, justifying the Buy rating.
In another report released today, Barclays also maintained a Buy rating on the stock with a $270.00 price target.