UBS upgraded Union Pacific to a Buy rating on Wednesday, lifting the rail stock from Neutral. Analyst Thomas Wadewitz said the firm's analysis of key customer markets points to a second year of strong volume growth setting up for Union Pacific in 2027, with low inventories signaling further growth in steel volumes and elevated energy prices expected to keep supporting the petroleum and products segment. Wadewitz and his team forecast EPS of $13.41 for 2026 and $14.90 for 2027, both above consensus. UBS sees the combination of solid EPS delivery and optionality on a potential merger with Norfolk Southern supporting attractive upside over the next 12 months, though Wadewitz expects the regulatory review process to be challenging with an uncertain outcome. Shares of Union Pacific rose 0.5% to $285.39 at 11:59 a.m., against a 52-week high of $315.99.
Union Pacific CorporationUBS upgraded Union Pacific to Buy, citing above-consensus EPS forecasts and merger optionality.
Norfolk Southern CorporationMentioned only as the potential merger partner for Union Pacific, with no standalone development for Norfolk Southern.
