UPDATE: Seaport Global Securities Starts Union Pacific (UNP) at Buy
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
(Updated - October 24, 2016 9:27 AM EDT)
Seaport Global Securities initiated coverage on Union Pacific (NYSE: UNP) with a Buy rating and a price target of $100. Analyst Mark A. Levin thinks a recent correction creates an opportunity.
"We think that concerns about the company's Q3 core pricing growth (the weakest in several years) create an opportunity to buy arguably the best and most diversified rail franchise in North America. In our view, pricing is a lagging, not leading, indicator, and will improve as volumes accelerate. The current freight environment, while exceedingly challenging from both a volume and price perspective, is poised to improve in the coming quarters, aided by very easy comparisons and what eventually will become tighter capacity. When coupled with the significant productivity improvements the company has made the last several years, we are big believers in UNP's operating leverage. Moreover, we think western coal burn will be up at least 5% (and perhaps 10%) in 2017, far above what many believe is possible," said Levin.
Shares of Union Pacific closed at $90.37 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Jefferies Cuts Price Target on Workday (WDAY) to $71 Following 3Q
- Drexel Hamilton Raises Price Target on Workday (WDAY) Following 3Q Beat
- FBR Capital Cuts Price Target on Express (EXPR) Following 3Q EPS Miss
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, New Coverage
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!