Union Pacific (UNP) delivered a decent headline beat with its Q4 results helped by "one time-ish cost items," Morgan Stanley said in a note to clients emailed Friday.

The railroad company also provided "somewhat vague" guidance, the investment firm said, adding that Union Pacific, like its peers in the US rail space, remains a "show-me story for the near-term."

The company's Q4 results included a $40 million brakeperson contract settlement cost, which was more than offset by other expenses that were about $70 million better than Morgan Stanley's forecast, mainly driven by casualty and insurance items, the note said.

Union Pacific's outlook lacked specifics, and is comprehensible due to "continued choppiness in the macro," which likely won't impress investors and prompt them to "underwrite an upcycle just yet," the analysts said.

Morgan Stanley raised Union Pacific's price target to $220 from $219 while reiterating an equal-weight rating on the stock.

UNP shares were 0.4% higher in recent trading.

Price: 248.97, Change: +0.91, Percent Change: +0.37