Stifel lowered the firm’s price target on Union Pacific to $231 from $232 and keeps a Hold rating on the shares. In the final quarter of 2023, there was an improvement of rail service and a nice “bounce” in carloads, the analyst tells investors. EPS and operating ratios should be better than that in Q3 and that trend will likely continue into early 2024. However, this improving market has been anticipated by the Class 1 equities, which were up over 5% since the beginning of December. Stifel anticipates improvement across the board in 2024 but believes there is limited room for multiple expansion and either the economy would need to be stronger or rails will have to gain share on truckloads.
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Read More on UNP:
- North American rail traffic up 6.6% for the week ending January 6
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