Union Pacific (UNP) Stock: Why It Fell Over 3% Today

By Amit Chowdhry ● Sep 14, 2022
  • The stock price of Union Pacific (UNP) fell by over 3% intraday today. This is why.

The stock price of Union Pacific (UNP) fell by over 3% intraday today. 

Why: Bearish research report

Price target: Reduced from $234 to $230

Rating: Downgraded from “Outperform” to “Market Perform”

Analyst: Bernstein analyst David Vernon

Vernon adjusted the rating while acknowledging that railroad valuations have held up well with service improvements on the way. And volume trends are improving leaving the market generally more positive on the group. But at the same time, macro crosswinds, a looming reset in the truck market, and elevated labor inflation increase the risk to top-line growth and margin expansion into this year. 

Even though Vernon believes railroads are great companies and offer a lower risk way of participating in the cyclical rally that will follow a fed pivot, he finds it harder to make the case to add to U.S. rail exposure going forward.