Union Pacific has been the second weakest performing rail stock in 2022, but it will outperform peers after the company announced Chairman and CEO Lance Fritz will step down in 2023 at the conclusion of a succession process that started in March 2022, JPMorgan analyst Brian Ossenbeck tells investors in a research note. The firm expects the market will price in a high probability of Jim Vena’s return and would likely turn positive on the stock if he were to return at some point in 2023. In the meantime, Union Pacific will still face the same operating and end market challenges as it does today and the new CEO "could also be walking into an adverse regulatory environment following the Norfolk derailment in Ohio," JPMorgan contends. As such, it keeps a Neutral rating on the stock.
Published first on TheFly
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