Union Pacific's Earnings Beat Prompts Price Target Hikes

© Reuters

By Sam Boughedda — Following its third-quarter earnings, a number of analysts upgraded price targets for railroad company Union Pacific Corporation (NYSE:).

The company reported an EPS of $2.57 on Thursday, above the anticipated $2.49, while revenue came in at $5.6 billion, beating the $5.41 billion expected. Its shares are up over 3% on Friday.

“The Union Pacific team successfully navigated global supply chain disruptions, a major bridge outage, and additional weather events to produce strong quarterly revenue growth and financial results,” said CEO Lance Fritz

Following its earnings numbers, analysts at Deutsche Bank, BMO Capital, TD Securities, and RBC Capital raised price targets for the stock.

Deutsche Bank analyst Amit Mehrotra increased the price target on Union Pacific to $261 from $225, maintaining a buy rating. Mehrotra said it is clear from the railroad earnings season that pricing is coming in stronger than anticipated, with further room for improvement in 2022.

Fadi Chamoun at BMO Capital raised the Union Pacific price target to $265 from $255, keeping an outperform rating after its earnings beat. Chamoun said the outlook for demand and pricing will improve in 2022 and 2023, and the company is in an excellent place to deliver strong positive operating leverage.

TD Securities analyst Cherilyn Radbourne boosted the firm’s price target on UNP to $245 from $240. Radbourne kept a hold rating on the shares, noting that the company moderated its 2021 guidance, which the analyst said was expected based on supply-chain challenges.

Walter Spracklin from RBC Capital raised the firm’s price target on Union Pacific to $252 from $227, affirming an outperform rating. Spracklin believes that the company remains well-positioned into 2022.


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