Boston, MA 06\/11\/2014 (wallstreetpr) \u2013 The upgrade from RBC Capital analysts for Union Pacific Corporation (NYSE:UNP)<\/b> has certainly bode well with the investors and ultimately for the company as its shares touched a\u00a0 record high on Tuesday. Benefitting from the analyst comments, the shares of the company soared both during the active session and after trading hours yesterday, closing the session at $102.42.<\/p>\n
RBC Remark<\/b><\/p>\n
In its note, the analyst at RBC Capital raised the rating of the company from sector perform to ‘outperform’ and revised the price target from $97 to $117. The reason for the price and rating upgradation comes as the research firm sees positive circumstances building around the overall rail sector. It is expected that the freight rates and volume levels could increase in the next 3-5 years, and the company would be an obvious benefiter in that scenario.<\/p>\n
Growth In End Markets<\/b><\/p>\n
Apart from RBC, other research firms like Bidnessetc, are also bullish about the outlook of rail industry, and particularly, Union Pacific. In its report, analysts at the research firm highlighted that the growth in coal production, crops, automobiles and industrial goods are expected to increase, thus, pointing to surge in demand for rail transport.<\/p>\n
The report further details out the information provided by the Energy Information Agency (EIA), with respect to the demand for coal in the short term. EIA assesses that the demand for coal is likely to increase during the year 2014, which will drive the rail shipments. EIA predicts a 4.4% surge in the current year, though seeing a slight fall in 2015. Thus, Bidnessetc suggests that the exposure of 20% of the company’s carload towards coal will immensely help it in improving the top line.<\/p>\n
Other than this, the expected increase in crop production, automobiles and industrial goods will also serve well for the progress of Union Pacific Corporation (NYSE:UNP) .<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 06\/11\/2014 (wallstreetpr) \u2013 The upgrade from RBC Capital analysts for Union Pacific Corporation (NYSE:UNP) has certainly bode well with the investors and ultimately […]<\/p>\n","protected":false},"author":13,"featured_media":25399,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[6690,6689],"stock_ticker":[],"class_list":["post-25394","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-nyseunp","tag-union-pacific-corporation-nyseunp","entry"],"acf":[],"yoast_head":"\n