Raymond James has maintained a Strong Buy rating on Union Pacific (NYSE: UNP) and set a price objective of $275.00, a level the firm says reflects confidence in the railroad’s service-first operational pivot and growth prospects. At the current trading price of $232.55, that target implies roughly an 18% upside.
The brokerage emphasized that planned adjustments to Union Pacific’s network should yield a more dependable and profitable system through better asset utilization and a stricter transportation plan. Raymond James pointed to the company’s gross profit margin of 56.14% as evidence of strong underlying profitability, based on InvestingPro data.
According to the firm, the CEO’s concentrated focus on operations bolsters the view that substantive improvements could materialize quickly. Raymond James also called attention to Union Pacific’s proposed acquisition of Norfolk Southern (NSC), describing the transaction as potentially "transformational" for the U.S. freight transportation industry.
The acquisition, if completed, is expected by Raymond James to combine higher volumes, enhanced service levels, improved pricing power and earnings growth that could exceed current market expectations. The firm’s assessment sits alongside a broader analyst consensus that remains bullish, with a consensus score of 1.96, which is equivalent to a Buy rating.
In corporate results, Union Pacific Corporation reported fourth-quarter 2025 results that modestly missed analyst forecasts for both earnings per share and revenue. The company delivered an EPS of $2.86, slightly below the $2.87 expected by analysts. Reported revenue for the quarter was $6.1 billion, versus a forecast of $6.12 billion.
Despite those small misses, Union Pacific’s shares demonstrated resilience in premarket trading. The quarter and the company’s results remain under close observation from investors and analysts, though recent discussions among analysts have not produced notable changes in their overall outlooks or generated any near-term upgrades or downgrades.
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Overall, Raymond James’ reiterated Strong Buy rating and $275 target rest on expectations that network optimization, disciplined transportation planning and potential scale benefits from a Norfolk Southern acquisition could shift Union Pacific’s trajectory toward stronger service, pricing and earnings growth. At the same time, recent quarterly results underline that short-term execution and near-term revenue and EPS outcomes remain relevant to investor sentiment.