Union Pacific upgraded to Outperform from Neutral at Baird

Baird upgraded Union Pacific (UNP) to Outperform from Neutral with a price target of $311, up from $239. The firm recommends buying the shares on pullbacks. Union Pacific has likely under-promised on the cost synergies associated with Norfolk Southern (NSC) transaction, which could “easily” reach well over the initial merger application’s estimate of $1B, the analyst tells investors in a research note. Baird “strongly” recommends investors use the next nine months to develop exposure to Union Pacific shares, especially on weakness, in anticipation of more favorable sentiment in 2026.