UPDATE: Bernstein Downgrades Union Pacific (UNP) to Market Perform

(Updated - September 14, 2022 6:34 AM EDT)

Bernstein analyst David Vernon downgraded Union Pacific (NYSE: UNP) from Outperform to Market Perform with a price target of $230.00 (from $234.00).

The analyst comments "We downgrade CSX and UNP from Outperform to Market-Perform. Railroads should be fine into 3q earnings...but at some point, consensus forecasts will need to be adjusted to the reality of weaker volumes, moderation in pricing tailwinds, and elevated inflation (the scope of which could go beyond PEB recommendations on wage gains if work rule changes are required to settle labor issues). Bulls are not wrong that railroads can price through added costs over time, and that longer term the growth narrative is real...but the next shift in sentiment regarding fundamentals is likely to be negative given the challenging macro and elevated inflationary pressures. We would be trimming on strength as opposed to adding on weakness, and at current levels believe it will be difficult for these stocks to outperform benchmarks over the next 12 months."

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 $226.29 yesterday.

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