Union Pacific's Sustainable Underlying Operating Metrics in Q1 to Drive Upside to Guidance, RBC Says

MT Newswires Live04-25 00:07

Union Pacific (UNP) showcased robust underlying operating metrics in Q1, which are sustainable and could complement better volume outlook to drive further upside to guidance, RBC Capital Markets said in a research report emailed Friday.

While deal expectations will be a factor influencing share performance, construction was added as a new growth driver while automotive moved to neutral from negative amid a potentially improving freight environment, analysts wrote.

Q1 earnings beat was driven by volume and margin trends, while inline revenue could be attributed to core pricing gains and higher fuel surcharge revenue, according to the note.

The brokerage said it maintained its outperform rating on the stock and boosted its price target to $289 per share from $273.

Price: 272.04, Change: +0.78, Percent Change: +0.29

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