Bank of America Securities analyst Ken Hoexter has reiterated their bullish stance on UNP stock, giving a Buy rating yesterday.
Ken Hoexter has given his Buy rating due to a combination of factors including Union Pacific’s solid fourth-quarter performance and its operational advancements. The company exceeded earnings per share (EPS) expectations, showcasing an increase year-over-year and surpassing both Bank of America Securities’ target and the consensus estimate. This financial success is attributed to significant improvements in operational metrics, such as increased car miles per day and locomotive productivity, as well as commendable intermodal trip plan compliance. Despite losing a key intermodal contract and facing challenging coal comparisons, Hoexter recognizes the company’s conservative yet realistic approach to its financial outlook, coupled with a persistent improvement in operations under CEO Vena’s leadership.
Hoexter’s optimism is further bolstered by Union Pacific’s revenue and operating income surpassing targets, with a slight year-over-year improvement in operating ratio, indicating efficient cost management. The operating ratio’s quarter-over-quarter progress reflects the company’s potential for operational leverage. Consequently, Hoexter has adjusted the price objective upwards, factoring in the swiftly improving service levels as Union Pacific moves past its lowest earnings period. Even with a minor reduction in EPS estimates for the upcoming years due to near-term volume uncertainty, Hoexter’s valuation reflects confidence in the company’s ability to navigate through a challenging macro environment and continue its upward trajectory.
In another report released yesterday, Barclays also assigned a Buy rating to the stock with a $290.00 price target.
See Insiders’ Hot Stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
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:
- Union Pacific Reports Fourth Quarter and Full Year 2023 Results
- Notable companies reporting before tomorrow’s open
- North American rail traffic down 13.5% for the week ending January 20
- UNP Earnings Report this Week: Is It a Buy, Ahead of Earnings?
- AMD downgraded, American Airlines upgraded: Wall Street’s top analyst calls
