Evercore ISI analyst Jonathan Chappell has maintained their neutral stance on UNP stock, giving a Hold rating on April 9.
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Jonathan Chappell has given his Hold rating due to a combination of factors affecting Union Pacific’s performance. Despite the company posting a slightly better-than-expected EPS for the first quarter of 2025, it fell short of the average market forecast. The company faces challenges such as unfavorable fuel surcharge comparisons and a reduction in operating days, which have impacted its operating ratio and earnings per share.
Additionally, while Union Pacific has maintained its guidance targets for the year, there is an acknowledgment of demand uncertainties and potential declines in international intermodal volumes. The company’s operational flexibility and strong pricing position are positive aspects, but the potential for escalating headwinds, particularly in volume growth and revenue, tempers expectations. As a result, Chappell has adjusted the full-year EPS estimates downward and revised the price target, leading to the Hold rating.
Chappell covers the Industrials sector, focusing on stocks such as XPO, Old Dominion Freight, and United Parcel. According to TipRanks, Chappell has an average return of 12.7% and a 53.78% success rate on recommended stocks.
In another report released on April 9, Jefferies also maintained a Hold rating on the stock with a $230.00 price target.