(The following report appeared at NewRatings.com on April 23.)
NEW YORK — Analyst J H Seidl of Credit Suisse maintains his “outperform” rating on Union Pacific Corp. The 12-month target price has been raised from $108 to $133.
In a research note published this morning, the analyst mentions that the company has reported its 1Q07 earnings significantly ahead of the estimates and the consensus primarily due to a substantial improvement in operational efficiency and robust price gains, despite low demand trends. Union Pacific has issued its EPS growth guidance for 2Q07 at 10%-15%, which appears to be highly conservative, given the pricing trends, the analyst says.