Union Pacific (UNP) PT Raised to $260 at Citi

Citi analyst Ariel Rosa raised the price target on Union Pacific (NYSE: UNP) to $260.00 (from $254.00) while maintaining a Neutral rating.

The analyst comments "UNP reported 4Q24 adj. EPS of $2.91, including a $40mil. ($0.05/sh) crew agreement ratification expense, beating Citi/Street’s $2.79 ests. The strong operating results lifted UNP shares +5% on Thursday towards the upper-end of its 52-week range. CEO Jim Vena and team are clearly executing well relative to peers, with UNP reiterating its expectation to deliver the best margins in the rail industry. Operating ratio of 58.7% was 140bps better than our 60.1% est, reflecting efficiency gains as UNP moved 5% more volume y-y on 3% fewer employees. Management acknowledged that some portion of its strong volume was from tariff pull-forward and East to West Coast freight diversion. UNP continues to execute at high levels, but we remain Neutral given concerns over cross-border tariff exposure, a challenging y-y comp in 2025 which could result in EPS growth at the low-end of its multi-year target range, and elevated valuation relative to peers."

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