Information Provided By:
Fly News Breaks for February 23, 2016
UNP
Feb 23, 2016 | 08:24 EDT
Morgan Stanley analyst Ravi Shanker downgraded Union Pacific to Equal Weight and lowered his price target to $74 from $87 on shares. The analyst said Union Pacific's sizable coal segment could get a lot worse if natural gas falls below $2.40, and a large number of coal plants consider switching. Further, rail cost per unit are much higher in the Midwest and western USA where UNP's exposure to coal plants is greatest, which could result in significant pricing headwinds.