TD Cowen analyst Jason Seidl has reiterated their bullish stance on UNP stock, giving a Buy rating today.
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Jason Seidl’s rating is based on Union Pacific’s strong performance in the third quarter, where the company exceeded earnings expectations with an adjusted EPS of $3.08, surpassing both the firm’s estimate and the consensus. Despite facing macroeconomic pressures and challenging year-over-year comparisons, Union Pacific has maintained robust core pricing, which has been supported by their emphasis on service quality.
Additionally, the company has shown resilience in its pricing strategy, managing to deliver pricing gains that surpass inflation even in a tough demand environment. This pricing momentum is expected to benefit Union Pacific’s margins in the coming years, aligning with their long-term earnings growth outlook. Furthermore, the upcoming shareholder vote and the anticipated STB filing are seen as positive steps, with a high likelihood of deal approval, despite some opposition. These factors collectively contribute to the Buy rating assigned by Jason Seidl.
In another report released today, Barclays also maintained a Buy rating on the stock with a $270.00 price target.