Shares of Union Pacific Corporation (NYSE: UNP) have recovered 10% to $216 since the start of the month. But JPMorgan Chase says it is still not too late to ride the impending rally.
Analyst Brian Ossenbeck raises price target to $247
In a note on Friday, JPMorgan’s Brian Ossenbeck upgraded the stock to “overweight” and raised his price target to $247 that represents a 15% upside from here. Previously, the analyst had a PT of $234 on UNP.
On the flip side, however, Jim Cramer has not had a good experience owning Union Pacific shares so far. In his investment club letter, the Mad Money host said:
This could be a big call because owning UNP has been a nightmare. Bought it bad; didn’t count on such awful supply chain issues.
Cerity Partners’ Lebenthal agrees with the bullish call
On CNBC’s “Halftime Report”, Cerity Partners’ Jim Lebenthal agreed with JPMorgan’s thesis that things had “materially improved” for Union Pacific in September. He said:
We all know about the congestion at the ports. Eventually, that’s going to work its way out. Beyond that, you’re still early in an economic expansion, you’ve still got an accommodative Fed, likely to get more stimulus in terms of infrastructure spending which is going to benefit the railroads.
JPMorgan’s price target on UNP closely matches peers Wells Fargo and Citigroup at $246 and $245, respectively. The Nebraska-based company is scheduled to report its Q3 earnings on October 21st.
The post JPMorgan upgraded this stock that Cramer called a ‘nightmare’ appeared first on Invezz.
