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On Monday, Loop Capital made an adjustment to Union Pacific ’s (NYSE:UNP) stock, reducing the price target to $200.00 from the previous $202.00. The railroad giant, currently valued at $127.4 billion, trades at $213.29 per share. Despite this change, the firm maintained its Sell rating on the railroad company. The revision followed Union Pacific’s first-quarter earnings report for 2025, which was released on the morning of April 24. According to InvestingPro data, the company maintains impressive gross profit margins of 55.7%.
The analyst at Loop Capital, Rick Paterson, noted that the updated estimates for Union Pacific did not significantly change following the company’s recent financial disclosure. However, the price target was slightly lowered as a reflection of the firm’s updated analysis. Paterson explained that the adjustment was made as they moved their earnings base forward by a quarter. InvestingPro analysis reveals that 17 analysts have revised their earnings downwards for the upcoming period, suggesting broader market caution.
Union Pacific’s performance in the first quarter has been influenced by the introduction of tariffs, which are expected to have an impact on rail volumes in the coming weeks. The analyst pointed out that the effects of these tariffs are beginning to show and are anticipated to suppress some of the company’s rail traffic.
Despite the reduction in the price target, the Sell rating that Loop Capital has consistently applied to Union Pacific remains unchanged. This suggests that the firm advises investors to be cautious with the stock, based on their analysis of current market conditions and the company’s prospects.
The adjustment in the price target is a reflection of the analyst’s view on the company’s valuation and future performance. Trading at a P/E ratio of 19.2, Union Pacific offers a dividend yield of 2.51% and has maintained dividend payments for 55 consecutive years. Union Pacific’s stock will continue to be monitored by investors as market conditions evolve and as the company navigates the challenges presented by the new tariffs. For deeper insights into Union Pacific’s valuation and comprehensive analysis, investors can access the detailed Pro Research Report available on InvestingPro.
In other recent news, Union Pacific Corporation reported its first-quarter earnings for 2025, missing both earnings per share (EPS) and revenue forecasts. The company posted an EPS of $2.70, which was below the expected $2.76, and revenue reached $6.03 billion, falling short of the anticipated $6.10 billion. Despite these shortfalls, the company achieved a 1% increase in freight revenue and saw improvements in operational metrics, such as workforce productivity and train length. Analyst Justin Long from Stephens adjusted the price target for Union Pacific shares, reducing it to $255 from $275, while maintaining an Overweight rating. Long noted the company’s pricing power and operational expenditure reductions but anticipated headwinds in intermodal volumes due to slowing international activity. Meanwhile, Loop Capital’s Rick Paterson raised the price target slightly to $202 from $200, maintaining a Sell rating due to concerns over the impact of tariffs on the company’s operations. Paterson highlighted that these tariffs could dampen rail volumes in the near term. Overall, Union Pacific’s recent developments reflect mixed outcomes, with challenges in meeting earnings expectations but strengths in operational improvements and pricing strategies.
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