UBS Upgrades Union Pacific to Buy, Raises Price Target to $339

According to CNBC, UBS upgraded Union Pacific to buy from neutral and lifted its price target to $339 from $310, implying 19% upside from Tuesday's close. Analyst Thomas Wadewitz said the freight carrier could benefit from stronger cargo volumes and pricing, and UBS expects Union Pacific's intermodal freight volume to rise 3.5% year over year in 2027. Wadewitz also said the company's planned transcontinental merger with Norfolk Southern Corporation could provide additional upside, though he said the regulatory review is likely to be challenging and the outcome uncertain. LSEG data showed 18 of 27 analysts covering Union Pacific rate the stock buy or strong buy. Shares have gained 23% in 2026 and rose more than 1% in premarket trading after the upgrade.