UNP
No hard feelings: UP-NS will see fact-based review
Article Summary
HOLD- Union Pacific (NYSE: UNP) and Norfolk Southern (NASDAQ: NSC) face a further delay as the Surface Transportation Board conditionally accepted the partners' revised merger application, but formal review of the deal to create the first transcontinental freight railroad won't begin until July 27, with TD Cowen analysts noting that the refiled application is accepted but narrowly meets completeness standards.
- The STB has indicated that it would allow a 30-day extension to this deadline if requested by UNP/NSC due to the amount of data they are requesting, pushing the potential merger close to well into the Fall of 2027 in the best case scenario assuming the application passes review with few other snags.
- The analysts noted that the STB expressed skepticism towards the merger's proposed committed gateway pricing to maintain competitive access at key locations, highlighting that CGP applies to a very limited subset of traffic excluding large categories like intermodal, autos, and unit trains and would only run for a finite oversight period.
Free users see 3 BUY signals per day. Premium unlocks all of them, plus instant email alerts.
See Plans
Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 1.9% | 25% | 20.0 ptsMinimal (1.9%) - Very weak |
| EPS Growth Next 5Y ? | 8.8% | 25% | 20.0 ptsWeak (8.8%) - Low expectations |
| Target Price Upside ? | 12.1% | 20% | 50.0 ptsMeets Minimum (12.1%) - Target: $293.52 vs Current: $261.73 |
| Gross Margin % ? | 45.6% | 15% | 60.0 ptsSolid (45.6%) - Decent margins |
| Drawdown from 52-Wk High ? | -6.4% | 15% | 20.0 ptsBarely a Dip (-6.4%) - Near recent highs |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About UNP
- Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, operates in the railroad business in the United States.
- It offers transportation services for grain and grain products, fertilizers, food and refrigerated products, and coal and renewables to grain processors, animal feeders, and ethanol and renewable biofuel producers; and construction products, industrial chemicals, plastics, forest products, specialized products, metals and ores, petroleum, liquid petroleum gases, soda ash, and sand, as well as finished automobiles, automotive parts, and merchandise in intermodal containers.
- The company was founded in 1862 and is headquartered in Omaha, Nebraska.