UPDATE: Baird Equity Research Downgrades Union Pacific Corporation to Neutral, Lowers PT as Diminishing Legacy Pricing Gains Limit Upside

In a report published Wednesday, Baird Equity Research analyst Benjamin J. Hartford downgraded the rating on

from Outperform to Neutral, and lowered the price target from $175.00 to $173.00. In the report, Baird Equity Research noted, “UNP's secular outperformance (+164% vs. S&P 500 since 2005-end) has been driven by strong core pricing growth (supported by legacy repricing momentum) and operational improvement, contributing to consistent upward earnings revisions. Strong execution and real pricing gains should continue, but diminishing legacy repricing tailwind (<3% of 2013E revenue) limits potential for upward earnings revisions in upcoming quarters; and into elevated investor sentiment, the stock could be range bound until the next phase of UNP's story materializes.” Union Pacific Corporation closed on Tuesday at $150.57.