Union Pacific is likely to get a healthy boost as it moves more cargo across the U.S., according to UBS. The investment bank upgraded the freight carrier to buy from neutral. It also raised its price target to $339 from $310, implying 19% upside from Tuesday’s close. “Our analysis of key customer markets points to a second year of strong volume growth in 2027 … and our analysis of intermodal and merchandise pricing versus the truckload market points to a stronger tailwind from price,” analyst Thomas Wadewitz said Wednesday in a note to clients. UBS expects Union Pacific to grow its intermodal freight volume by 3.5% on a year-over-year basis in 2027. UNP YTD mountain UNP year to date Wadewitz added that the freight carrier may get an additional boost from its planned transcontinental merger. Union Pacific has signaled its intent to merge with Norfolk Southern Corporation to create the first transcontinental railroad in the U.S., although the multi-billion-dollar proposal has come under regulatory scrutiny. “UNP and NSC continue to blaze a new trail with their proposed transcontinental merger,” Wadewitz wrote. “We continue to expect the regulatory review process to be challenging with an uncertain outcome. However, we think it is appropriate to consider a merger approval scenario as a source of optionality for UNP stock.” UBS’ call falls in line with consensus on the Street. Of the 27 analysts covering Union Pacific, 18 have a buy or strong buy on the stock, LSEG data shows. Shares have jumped 23% in 2026. They added more than 1% in the premarket following the upgrade.
