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Union Pacific cut to Hold at Argus on export challenges, Norfolk Southern merger

Argus downgraded Union Pacific (UNP) to Hold from Buy with no price target. The firm cites the company’s recent announcement of a merger with Norfolk Southern (NSC) that it believes will negatively impact profitability if approved, the analyst tells investors in a research note. Union Pacific is also facing export challenges due to tariffs, while the stock trades at five-year valuation lows on P/E and price to sales basis, Argus added.

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