Union Pacific Corp. Rating Increased to Buy at Goldman Sachs Group Inc. (UNP)
Union Pacific Corp. (NYSE:UNP) was upgraded by investment analysts at Goldman Sachs Group Inc. from a “neutral” rating to a “buy” rating in a note issued to investors on Friday, TheFlyOnTheWall.com reports. The firm currently has a $176.00 price target on the stock. Goldman Sachs Group Inc.’s target price points to a potential upside of 16.43% from the company’s current price.
The analysts wrote, “We upgrade UNP stock to Buy from Neutral, as the valuation has retraced to levels that we find attractive relative to the carrier’s long-term growth prospects. The stock now trades at less than 14x our 2014E EPS. There is 16% potential upside to our unchanged 12-month price target of $176. We believe the correction in the stock price has created a good entry point, as our long-term thesis remains intact. UNP has a solid franchise with a diverse revenue mix. We believe its exposure to crude by rail should bolster medium-term earnings growth, while contributions from cross-border traffic should provide an incremental edge over its Class I peers over the long term.”
Union Pacific Corp. (NYSE:UNP) traded up 0.79% during mid-day trading on Friday, hitting $152.35. 3,385,370 shares of the company’s stock traded hands. Union Pacific Corp. has a 52-week low of $116.06 and a 52-week high of $165.18. The stock’s 50-day moving average is $156.1 and its 200-day moving average is $154.4. The company has a market cap of $70.667 billion and a P/E ratio of 17.21.
Union Pacific Corp. (NYSE:UNP) last announced its earnings results on Thursday, October 17th. The company reported $2.48 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.56 by $0.08. The company had revenue of $5.57 billion for the quarter, compared to the consensus estimate of $5.58 billion. During the same quarter in the previous year, the company posted $2.19 earnings per share. The company’s revenue for the quarter was up 4.3% on a year-over-year basis. On average, analysts predict that Union Pacific Corp. will post $9.41 earnings per share for the current fiscal year.
A number of other firms have also recently commented on UNP. Analysts at Cowen and Company cut their price target on shares of Union Pacific Corp. from $174.00 to $170.00 in a research note to investors on Thursday. They now have an “outperform” rating on the stock. Separately, analysts at Avondale Partners upgraded shares of Union Pacific Corp. from an “equal weight” rating to an “overweight” rating in a research note to investors on Tuesday, October 8th. Finally, analysts at TD Securities cut their price target on shares of Union Pacific Corp. from $174.00 to $170.00 in a research note to investors on Monday, October 7th. They now have a “hold” rating on the stock. Eleven research analysts have rated the stock with a hold rating and sixteen have given a buy rating to the stock. The company currently has an average rating of “Buy” and an average price target of $143.92.
Union Pacific Corporation (NYSE:UNP) owns transportation companies.
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