UNP - Union Pacific Corporation: New Management Key To Superior Returns

2024-03-31 02:45:38 ET

Summary

• Union Pacific Corporation is rated as a buy as new management aims to improve operations and unlock superior shareholder returns.
• The appointment of Jim Vena as the new CEO brings industry experience and a multi-year strategy to tackle UNP's problems.
• Early signs of operational improvements under the new management are evident, with positive performance metrics and a stronger stock price performance compared to competitors.
• Continuous incremental operational improvements over a long period will lead to superior shareholder returns.

Investment Thesis

Union Pacific Corporation ( UNP ) is rated as a buy as operations improve. We believe the new management will continue implementing significant improvements that will enable UNP to unlock superior shareholder returns. Previous management delivered a poor multi-year operational performance and at its current valuation, UNP is a long-term buy.

Introduction

UNP is one of the Class 1 freight railroad companies in the United States. The company is 161 years old and its rail network covers 23 states. UNP's rail network is below indicating good coverage across the U.S....

For further details see: