BMO Capital Markets Outperform on Union Pacific

BMO Capital Markets is out with a research report on Union Pacific UNP after it beat earnings. It has an Outperform rating and a $110 price target on shares. In a note to clients, BMO Capital Markets writes, "We expect results will be well received by investors. Trends in pricing and cost inflation are encouraging and should underpin margin expansion in 2012 even in the context of moderate volume growth. The company is distributing over 70% of net income to shareholders and we believe a greater level of distribution is likely given high cash balances and a strong balance sheet. We reiterate our Outperform rating. " Shares of UNP are up $4.85 to $95.81.