UPDATE: Benchmark Starts Union Pacific (UNP) at Buy

(update comment)

Benchmark analyst Mark Levin initiates coverage on Union Pacific (NYSE: UNP) with a Buy rating and a price target of $206.00.

The analyst comments "Our price target assumes the shares trade to ~19.5x our 2021 EPS estimate. Admittedly, the target multiple looks aggressive for a stock that has traded at a 5- year average forward P/E multiple of 16.2x. However, we think UNP is best valued through the prism of its longer-term EPS potential. At a 56% operating ratio (OR) that conservatively embeds only low-single digit revenue growth, we think UNP can generate EPS of ~$12.10. Applying a market multiple implies a share price of $206. At the Company’s long-term 55% OR target, we think its EPS power is an even greater $12.45."

For an analyst ratings summary and ratings history on Union Pacific click here. For more ratings news on Union Pacific click here.

Shares of Union Pacific closed at $187.19 yesterday.

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