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Union Pacific's 2027 Growth Outlook Supported by Pricing, Freight Demand, UBS Says

MT Newswires Live10-24 01:33

Union Pacific (UNP) is positioned for earnings growth in 2027, supported by pricing strength and demand in domestic intermodal, industrial, energy and chemicals shipments, UBS Securities said Thursday in a report.

On Union Pacific's proposed merger with Norfolk Southern (NSC), UBS said the likelihood of discussions with other railroads could increase after responsive applications are filed with the Surface Transportation Board by Nov. 18.

On Thursday, Union Pacific reported Q3 adjusted earnings rose to $3.53 per diluted share from $3.08 a year earlier. Analysts polled by FactSet expected $3.47.

Operating revenue increased to $7.2 billion from $6.24 billion. Analysts projected $7.16 billion.

UBS reiterated its buy rating on Union Pacific stock and its $339 price target.

Price: 292.25, Change: -5.84, Percent Change: -1.96

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