Shares of railroad operator Union Pacific Corp. (NYSE:UNP) are rallying today after it announced an update on succession planning.
UNP’s Board is scouting for a candidate to fill the shoes of its CEO Lance Fritz. It formed a task force in November 2022 and plans to name a successor who will take up the mantle, this year.
The development comes after Soroban Capital Partners, which holds about a $1.6 billion stake in the company raised concerns over UNP’s sagging growth metrics and underperformance versus its peers.
UNP’s network spans over 32,000 miles and the leadership change is part of the broader industry undercurrent to move towards longer trains and a significantly lower headcount.
Overall, Wall Street has a consensus price target of $222.95 on UNP, implying a 14.91% potential upside in the stock. That’s after a nearly 20% slide in UNP shares over the past year.
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