Goldman Sachs analyst Jordan Alliger has maintained their bullish stance on UNP stock, giving a Buy rating on April 22.
Jordan Alliger’s rating is based on a comprehensive evaluation of Union Pacific’s recent financial performance and strategic initiatives. The company’s first-quarter earnings for 2024 surpassed both Goldman Sachs’ and the consensus estimates, indicating robust operational efficiency. The earnings per share of $2.69 exceeded the anticipated figures, showcasing Union Pacific’s successful cost management and margin improvement measures. This performance is particularly impressive given it was achieved in the context of only a modest increase in revenue.
Alliger has given his Buy rating due to a combination of factors including Union Pacific’s continued focus on productivity and cost reduction, which is expected to drive over 300 basis points of average margin improvement in the second half of 2024. The positive outlook is supported by the anticipation of better year-over-year volume growth. The company’s operating ratio, a key metric in the railway industry, also significantly outperformed expectations, further reinforcing confidence in the company’s trajectory and the Buy rating.
Alliger covers the Industrials sector, focusing on stocks such as Norfolk Southern, United Parcel, and JB Hunt. According to TipRanks, Alliger has an average return of 8.9% and a 54.04% success rate on recommended stocks.
In another report released on April 22, Deutsche Bank also reiterated a Buy rating on the stock with a $266.00 price target.
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Union Pacific (UNP) Company Description:
Founded in 1969, Nebraska-based Union Pacific Corp., through its principal subsidiary, Union Pacific Railroad Company, engages in railroad and freight transportation services. It offers transportation services for diversified business including agricultural products, food and beverage products, petroleum and gases, chemicals, coal, industrial products, intermodal and automotive.
Read More on UNP:
- North American rail traffic up 1.3% for the week ending April 20
- Union Pacific named short-term buy idea at Deutsche Bank
- North American rail traffic up 1.4% for the week ending April 13
- Union Pacific put volume heavy and directionally bearish
- Union Pacific price target raised to $248 from $231 at Stifel
