Benzinga - Shares of Union Pacific Corporation (NYSE: UNP) jumped in early trading on Monday.
The spike in share price comes after the Omaha, Nebraska-based company announced over the weekend that chairman and CEO Lance Fritz would step down in 2023.
Meanwhile, investor Soroban Capital is calling for former Union Pacific chief operating officer Jim Vena to replace Fritz.
Bank of America Securities subsequently highlighted the operational underperformance Union Pacific has experienced over the past few years/
Check out other analyst stock ratings.
The Analyst: Ken Hoexter upgraded the rating for Union Pacific from Neutral to Buy, while raising the price target from $218 to 241.
The Thesis: The company stated last week that its first-quarter performance was impacted by weather conditions, leading volumes to trend below target, Hoexter said in the upgrade note.
“The list of other experienced available rail operators is short in our view,” the analyst wrote. “Mr. Vena has experience posting improvement at UNP, gains that slid back after he left, less than two years after his tenure started."
Hoexter further stated that he had increased confidence in the company’s “path to operational improvement and potential for accelerating gains.”
UNP Price Action: Shares of Union Pacific had risen by 9.91% to $213.24 at the time of publication Monday.
Image courtesy of Union Pacific
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