Union Pacific is positioned for growth as UBS has upgraded its rating from neutral to buy, raising the price target from $310 to $339, suggesting a 19% upside from the stock's recent close. Analyst Thomas Wadewitz noted that strong volume growth is expected in 2027, with a projected 3.5% increase in intermodal freight volume year-over-year.
Additionally, the potential merger with Norfolk Southern Corporation, aimed at creating the first transcontinental railroad in the U.S., could further enhance Union Pacific's market position, although it faces regulatory challenges. The upgrade is consistent with the views of the majority of analysts covering the stock, with 18 out of 27 recommending a buy or strong buy.
Following the upgrade, Union Pacific shares saw a premarket increase of over 1%, building on a 23% rise in 2026