Citi analyst Christian Wetherbee removed Union Pacific (UNP) from his firm's Focus List after resetting his preference list among the Railroads. The second half of 2017 "looks to be more of a grind for the group compared to the relatively smooth sailing" in the first half, Wetherbee tells investors in a research note. He names Kansas City Southern (KSU) his top pick in the sector, followed by Canadian Pacific (CP) and CSX (CSX). KSU's volume and revenue growth should stand out as it has more energy price neutral volume growth opportunities and its comps increase less than peers, the analyst contends.

Scotiabank lowered the firm's price target on Canadian Pacific Kansas City to C$124 from C$126 and keeps a Sector Perform rating on the shares.

Reports Q1 revenue $6.03B, consensus $5.98B. "Our team delivered strong financial results in the first quarter as we navigated a challenging freight market and normal winter conditions," said Jim Vena, Union Pacific CEO. "These results build on the momentum we established as we exited 2023 and provide further proof of what's possible as we strive to be the best in safety, service, and operational excellence. This is a great start to the year, but we understand there's work to be done to achieve our goals and meet our stakeholders' expectations."

Susquehanna analyst Bascome Majors lowered the firm's price target on Canadian Pacific Kansas City to $80 from $84 and keeps a Neutral rating on the shares. The firm views the company's nearer-term conservatism as prudent given the historic unpredictability of Canadian Teamsters labor negotiations, and remain on the sidleines primarily because of valuation.