Baird cuts Union Pacific rating to Neutral and lowers price target amid merger review concerns

Baird Research downgraded Union Pacific Corp. (UNP) from Outperform to Neutral, citing uncertainty over the Surface Transportation Board’s review of the Union Pacific‑Norfolk Southern merger. The analyst reduced the price target to $310 from $344, while the stock was trading near $308.53. The downgrade came after the company posted third‑quarter adjusted earnings per share of $3.53, driven by a 9% revenue rise from fuel surcharges and a 6% increase in volume.

The lower rating and target may pressure UNP’s share price as investors reassess merger‑related risks. Baird’s view signals that approval uncertainty could limit upside despite strong recent earnings.

  • 1Baird changed its rating on Union Pacific to Neutral from Outperform.
  • 2The firm cut its price target to $310, down from $344.
  • 3UNP was trading at $308.53 when the downgrade was announced.
  • 4The downgrade follows a Surface Transportation Board filing concerning the merger review with Norfolk Southern.
  • 5Union Pacific reported third‑quarter adjusted EPS of $3.53.
  • 6Revenue grew 9% from fuel surcharges and 6% from volume in Q3.

Sources