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Investing.com - BMO Capital has lowered its price target on Union Pacific (NYSE:UNP) to $275.00 from $277.00 while maintaining an Outperform rating on the railroad operator’s stock. According to InvestingPro data, analyst targets for UNP range from $213 to $298, with the stock currently trading at a P/E ratio of 19.12x.
The firm noted that Union Pacific’s third-quarter 2025 results broadly met expectations, with notable strength in operational execution and service levels that merit recognition. The company maintains impressive gross profit margins of 55.89% and has consistently rewarded shareholders, having raised its dividend for 18 consecutive years.
BMO Capital has moderated its 2026 estimates to reflect the continued muted demand outlook for the transportation company.
Despite the slight price target reduction, the research firm believes Union Pacific stock offers attractive upside based on the company’s standalone earnings per share and free cash flow growth framework.
BMO Capital also highlighted that a potential successful combination with Norfolk Southern (NYSE:NSC) could offer further upside optionality for Union Pacific shareholders.
In other recent news, Union Pacific has been the focus of several analyst reports. BofA Securities lowered its price target for Union Pacific to $260, citing adjustments to their valuation metrics, although they maintained a Buy rating on the shares. Meanwhile, BMO Capital reiterated its Outperform rating for the company, highlighting strong operating margins and robust free cash flow despite market challenges. TD Cowen also raised its price target to $258, driven by potential synergies from a possible collaboration with Norfolk Southern . Bernstein SocGen Group maintained an Outperform rating with a $294 price target, optimistic about the benefits of a proposed combination with Norfolk Southern.
In related developments, CSX Corp’s CEO, Joe Hinrichs, was ousted following concerns over his handling of a potential merger approach from Union Pacific. The CSX board reportedly felt that Hinrichs did not adequately pursue this merger opportunity. These recent developments indicate active strategic considerations and analyst interest surrounding Union Pacific and potential industry collaborations.
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