Dahlman Rose & Co. Reiterates Buy Rating on Union Pacific (UNP)

Dahlman Rose & Co. reiterated its Buy rating on Union Pacific UNP this morning. Noting that "The rail market remain[s] strong with pricing and productivity gains intact," Dahlman Rose maintained its $88 price target. Dahlman Rose met with Union Pacific management yesterday and commented that the company "is benefiting from strong auto, chemical, and intermodal business." Dahlman Rose is also confident that Union Pacific is likely to use free cash flow for share repurchases and dividends. Union Pacific's principal activity is to provide rail transportation. Shares are trading down late this morning, to $72.79.