Bernstein raised the firm’s price target on Union Pacific to $286 from $271 and keeps an Outperform rating on the shares as the firm runs the merger’s math behind a Union Pacific (UNP)/Norfolk Southern (NSC) merger. Bernstein notes that it gets “that buyers’ stocks go down and target stocks go up,” but says it still thinks this is going to be a more friendly deal than a typical takeout. Both shareholder groups have the potential to unlock significant value in this transaction that is otherwise unable to be unlocked. The firm is not baking in the fully realized approved deal, but moving closer in that direction.
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