(The following report appeared at NewRatings.com on October 22.)
NEW YORK — Analyst J H Seidl of Credit Suisse reiterates his “outperform” rating on Union Pacific (UNP.NYS), while raising his estimates for the company. The target price has been raised from $136 to $138.
In a research note published on October 19, the analyst mentions that the company has reported its 3Q07 EPS significantly ahead of the estimates and the consensus on account of higher-than-anticipated operating margins. Union Pacific has attributed the sharp improvement in its operating margins to productivity gains. The analyst adds, however, that high diesel prices and an uncertain economic situation could restrict the company’s growth in the near term. The EPS estimates for FY07 and FY08 have been raised from $6.90 to $7.00 and from $8.00 to $8.10 respectively.