BMO Capital analyst Fadi Chamoun has maintained their bullish stance on UNP stock, giving a Buy rating today.
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Fadi Chamoun has given his Buy rating due to a combination of factors that highlight Union Pacific’s operational strengths and potential for future growth. The company’s performance in Q3/25 was in line with expectations, showcasing strong operational execution and service levels. Despite a muted demand outlook, the current valuation levels present an attractive upside, supported by Union Pacific’s EPS and free cash flow growth framework. Additionally, the potential merger with NSC offers further upside optionality, enhancing the company’s long-term growth prospects.
Union Pacific’s reaffirmation of its medium-term EPS growth target, despite a challenging volume outlook for Q4/25, indicates confidence in its strategic direction. The company has also made significant progress in rallying support for its merger with NSC, which could receive regulatory approval soon. Furthermore, Union Pacific’s ability to lower operating expenses and improve its competitive position suggests that it can sustain profitability and robust free cash flow over the medium to long term. These factors combined underpin Fadi Chamoun’s positive outlook and Buy rating for Union Pacific’s stock.
In another report released today, Citi also maintained a Buy rating on the stock with a $265.00 price target.