Union Pacific (UNP) Analyst Day Highlights Technology Improving Operations - Wells Fargo

May 5, 2021 7:02 AM EDT
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Price: $216.56 -0.67%

Rating Summary:
    27 Buy, 12 Hold, 1 Sell

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Today's Overall Ratings:
    Up: 16 | Down: 11 | New: 19
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Wells Fargo analyst Allison Poliniak-Cusic reiterated an Equal Weight rating and $226.00 price target on Union Pacific (NYSE: UNP) after the company hosted a virtual Analyst Day, where CEO Lance Fritz comments highlighted the benefits of technology improving operations.

The analyst stated "The PSR model has allowed UNP to help simplify the network, which has led to more consistent service at a lower cost, and thus we believe these improvements will help open new markets. While much progress has been made,UNP believes there is still room to improve; however, much of the improvement will likely come from additional investment. Technology was a large component on improved efficiencies with UNP highlighting its terminal planning tools and train profiles in order to create additional capacity. Furthermore, UNP has a strong interest in autonomous technology noting its development of its "Geometry Car", autonomous Tie Unloading,and autonomous tie plate distribution; trains are expected to eventually be automated." Regarding estimates, the analyst stated "we continue to believe that both revenues and volumes could be relatively tempered, leaving near-term upside from its improving operations. We are not changing our estimates or our price target as we take a more "wait and see" approach to long-term revenue growth".

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 $225.67 yesterday.

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