J.P. Morgan Says All Aboard Union Pacific (UNP)

J.P. Morgan Chase & Co. is raising its price target on Union Pacific Corporation UNP to $102 from $92 and maintaining its Overweight rating after the railroad company reported better than expected earnings. In a note to clients, J.P. Morgan writes, "UNP continued to realize strong incremental margin performance in 3Q10 and pricing stepped up modestly from the pace in 2Q. We believe that the poor response of the stock to the strong report was essentially a function of very high expectations. UNP's earnings story is likely to show continued momentum in 2011 with room for upside versus Consensus expectations and only modest sensitivity to the economy. As a result, despite the strong performance of UNP stock, our sense is that medium term reward to risk is still attractive." Shares of UNP lost 53 cents yesterday to close at $85.26.