UPDATE: Deutsche Bank Reiterates Buy Rating, Lowers PT on Union Pacific Corporation Following Disappointing 2014 Outlook, Intact Long-Term Thesis

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In a report published Friday, Deutsche Bank analyst Justin Yagerman reiterated a Buy rating on
Union Pacific CorporationUNP
, but lowered the price target from $181.00 to $175.00. In the report, Deutsche Bank noted, “Yesterday, UNP shares declined 3.8% (vs. a 0.7% increase in the S&P 500) due to a weak outlook (core pricing is expected to decelerate in 2014 [escalators & legacy] and a soft volume outlook, which will be impacted by the loss of $50 million of legacy coal biz and slower-than-expected crude-by-rail growth). Although Q3 EPS came in at the high-end of its preannounced range of $2.45-2.48, the outlook pushed fast money out of the shares. While we expect the shares to be sluggish near-term given economic uncertainty and limited visibility on coal vols, we continue to be buyers of the shares for H2 2014 and the eventual ramp in PetroChem biz in 2015+. BUY.” Union Pacific Corporation closed on Thursday at $151.16.
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Posted In: Analyst ColorPrice TargetAnalyst RatingsDeutsche BankJustin Yagerman
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