Union Pacific Corporation (NYSE:UNP) Receives Lower Rating From Bank of America (Merrill Lynch). What’s The Reasoning Behind This Move?


Union Pacific Corporation (NYSE:UNP) Receives a Downgrade

In an analyst note revealed to investors and clients on Friday morning, Bank of America (Merrill Lynch) downgraded shares of Union Pacific Corporation (NYSE:UNP) to a lower Neutral rating from the previous Buy rating.

From a total of 27 analysts covering Union Pacific Corporation (NYSE:UNP) stock, 22 rate it a ”Buy”, 1 a “Sell”, and 6 a ”Hold”. This means that 76% of the ratings are positive. The highest target price is $115 while the lowest target price is $80. The mean of all analyst targets is $103.89 with a 33.88% above today’s ($78.3) stock price. Union Pacific Corporation was the topic of 18 analyst reports since July 24, 2015 according to the firm StockzIntelligence Inc. Deutsche Bank maintained shares on October 23 with “Buy” rating. Citigroup maintained shares with “Buy” rating and $103 target share price in a report from an October 2. RBC Capital Markets maintained UNP stock in a recent report from October 23 with “Outperform” rating. Bank of America maintained the rating on September 11. Bank of America has a “Buy” rating and a $102 price target on shares. Finally, Barclays Capital downgraded the stock to “Equal-Weight” rating in a report issued on an October 5.

The stock decreased 1.14% or $0.9 on December 4, striking $78.3. Approximately shares of stock traded hands. Union Pacific Corporation (NYSE:UNP) has declined 27.48% since May 4, 2015 and is downtrending. It has underperformed by 26.41% the S&P500.

Union Pacific Corporation operates through its principal operating company, Union Pacific Railroad Company. The company has a market cap of $66.89 billion. The Firm is a Class I railroad operating in the United States, which has 31,974 route miles and maintains coordinated schedules with other rail carriers to move freight. It has 13.53 P/E ratio. It links 23 states in the western two-thirds of the country by rail, providing a supply chain link around the world.

According to Zacks Investment Research, “Union Pacific Corp. consists of one reportable segment, rail transportation, and the company’s other product lines. The rail segment includes the operations of the corporation’s wholly owned subsidiary, Union Pacific Railroad Company and Union Pacific Railroad Company’s subsidiaries and rail affiliates. The company’s other operations include the trucking product line, as well as the other product lines that include technology, self-insurance activities, corporate holding company operations, and all appropriate consolidating entries.” Get a free copy of the Zacks research report on Union Pacific Corporation (UNP).