Jefferies Offers Some Mixed Commentary on Union Pacific; Target Raised, Estimates Cut (UNP)

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Railroad operator Union Pacific Corporation ( UNP ) on Friday received some mixed commentary from analysts at Jefferies & Co.

The firm maintained its "Buy" rating on UNP and lifted its price target from $142 to $149. That new target suggests a 19% upside to the stock's Thursday closing price of $125.34.

A Jefferies analyst commented, "UNP continued its streak of upside earnings on strong core pricing and OR improvement despite the coal headwinds. We continue to see the pricing opportunity, relatively easier coal comps, and energy-related opportunities fueling growth going forward. UNP remains our top pick."

However, the firm cut its fourth quarter earnings estimate for the company from $2.32 to $2.24 per share, its full-year 2012 estimate from $8.46 to $8.32, and its 2013 estimate from $9.83 to $9.63.

Union Pacific shares were mostly flat in premarket trading Friday.

The Bottom Line
Shares of Union Pacific ( UNP ) have a 1.91% dividend yield, based on last night's closing stock price of $125.34. The stock has technical support in the $115-$118 price area. If the stock can firm up, we see overhead resistance around the all-time highs of $129 a share.

Union Pacific Corporation ( UNP ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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