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FMP

Union Pacific Corporation's Stock Outlook Amid Regulatory Review

  • Susquehanna maintains a "Buy" rating for NYSE:UNP, despite anticipating a modest decline due to regulatory hurdles.
  • The U.S. Surface Transportation Board's (STB) decision to return the proposed merger with Norfolk Southern for revision impacts investor sentiment.
  • Union Pacific's market capitalization stands at approximately $136.1 billion, highlighting its significant role in the transportation sector despite current challenges.

Union Pacific Corporation, trading under the symbol UNP on the NYSE, is a major player in the railroad industry. The company operates a vast network of railroads across the western two-thirds of the United States. It competes with other rail giants like Norfolk Southern and CSX Corporation. On January 19, 2026, Susquehanna maintained its "Buy" rating for NYSE:UNP, with the stock trading at $229.49.

Despite the "Buy" rating, Susquehanna suggests a "hold" action, anticipating a modest decline in Union Pacific's stock. This expectation follows the U.S. Surface Transportation Board's (STB) decision to return the proposed $85 billion merger with Norfolk Southern for revision. The STB cited a lack of required information, impacting investor sentiment.

The STB's decision is part of a broader review process to clarify enhanced competition under stricter merger rules adopted in 2001. The board found the application for the $71.5 billion merger incomplete, inviting Union Pacific and Norfolk Southern to revise and resubmit their proposal. This regulatory hurdle adds uncertainty to Union Pacific's strategic plans.

Union Pacific's stock, currently priced at $229.49, has seen a decrease of $1.02, or -0.44%, today. The stock's trading range for the day is between $228.91 and $231.92. Over the past year, UNP has experienced a high of $256.84 and a low of $204.66, reflecting market volatility and external factors affecting its performance.

Union Pacific Corporation has a market capitalization of approximately $136.1 billion, with a trading volume of 2,244,228 shares. This substantial market cap underscores its significance in the transportation sector, but the ongoing merger review process may influence its future stock performance.