NEW YORK — UBS Warburg on Friday cut its ratings on Burlington Northern Santa Fe Railway and Union Pacific Corp. (NYSE:UNP – news) to “hold” from “buy” due to recent gains for both stocks, reports a wire service.
Analyst Rick Paterson, in a research note, said Union Pacific and Burlington have rallied from their post-Sept. 11 lows by 44 percent and 30 percent, respectively. Union Pacific set a new 52-week high on March 4.
Paterson said the stocks are fully priced for an economic recovery. He also said he expects coal shipments to decline.
“Against the coal ‘head wind,’ we think upward earnings revision will be scarce,” he wrote.
Burlington Northern shares fell 85 cents to $30.40 while Union Pacific declined $1.25 to $63.35 in early trading on the New York Stock Exchange.