Union Pacific price target raised to $288 from $275 at RBC Capital

RBC Capital raised the firm’s price target on Union Pacific (UNP) to $288 from $275 and keeps an Outperform rating on the shares as part of a broader research note previewing Q3 results for Class 1 Railroads. The firm is watching closely the macro backdrop given cautious commentary from FedEx (FDX) and CN (CNI) that the industrial outlook is worse vs. prior expectations, though it is also adjusting its models with rolled forward valuation year to 2026, the analyst tells investors in a research note. For Union Pacific, RBC cites the announcement that Jim Vena will be its new CEO, noting that his strong operating philosophy will result in a marked turnaround in operating performance, which should drive operating ratio and service more toward PSR – precision-scheduled railroading – peers.