TD Cowen analyst Jason Seidl has reiterated their bullish stance on UNP stock, giving a Buy rating on April 16.
Jason Seidl’s rating is based on a combination of factors that highlight Union Pacific’s potential for long-term growth despite short-term challenges. The company experienced a slight miss in its first-quarter earnings, primarily due to pressures from intermodal yield mix and lower bulk and industrial volumes. However, the pricing outlook remains strong, with Union Pacific achieving a 10-year record in pricing, which is expected to continue improving as mix headwinds subside by 2025.
Additionally, Union Pacific’s focus on volume variability and operational efficiency is promising, as evidenced by a reduction in operating expenses despite increased carloads. The company is also benefiting from robust coal volumes and industrial development activities, with numerous construction projects in the pipeline. While there are some near-term uncertainties, such as intermodal volume volatility, the overall positive pricing environment and strategic emphasis on efficiency and development support the Buy rating for patient investors.
In another report released on April 16, Redburn Atlantic also upgraded the stock to a Buy with a $259.00 price target.