Union Pacific's CN Agreement Strengthens Deal Case After Strong Q2, RBC Says

MT Newswires Live
07/25

Union Pacific's (UNP) strong Q2 results and its memorandum of understanding with CN (CNI) reinforce the railroad's earnings outlook and strengthen its regulatory case for the proposed transaction with Norfolk Southern (NSC), RBC Capital Markets said.

Union Pacific and CN on Wednesday signed a binding MoU establishing a framework for CN to secure competitive access in connection with the proposed transaction between Union Pacific and Norfolk Southern.

RBC said in a Thursday note that the agreement strengthens Union Pacific's case for regulatory approval by addressing competition concerns and eliminating CN's opposition to the proposed merger. It also gives Union Pacific trackage rights on CN's EJ&E line around Chicago, easing what would otherwise have been a key congestion point for future operations.

The company reported Q2 adjusted EPS ahead of consensus expectations and raised its full-year EPS growth outlook to high-single digits. RBC said the new guidance was above market expectations.

RBC reiterated its outperform rating and raised the price target to $339 from $289.

Shares of Union Pacific were up 1.4% in Friday afternoon trading.

Price: 308.79, Change: +4.46, Percent Change: +1.46

免責聲明:投資有風險,本文並非投資建議,以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請,作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考,不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證,投資者應自行研究並在投資前尋求專業建議。

熱議股票

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10